Teachings from Axsome Therapeutics Inc. (NASDAQ:AXSM)’s rally

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Axsome Therapeutics, Inc. is a biopharmaceutical company. The company is focused on developing novel therapies for the management of pain and other central nervous system disorders. Its product candidate portfolio consists of AXS-02 and AXS-05 which are in clinical trial stage. Axsome Therapeutics, Inc. is based in New York.

Axsome Therapeutics (NASDAQ:AXSM) has been in the news for all the right reasons. Recently, Axsome Therapeutics (NASDAQ:AXSM) announced that the underwriter of the Company’s previously announced public offering has exercised in full its option to purchase an additional 561,497 shares. With the exercise of the underwriter’s option, total gross proceeds from the offering of an aggregate 4,304,813 shares at a price to the public of $3.74 per share are expected to be approximately $16.1 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Axsome. All shares in the offering were sold by Axsome.

The Barchart Technical Opinion rating is a 16% Buy with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Minimum.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). Currently, the 5 day EMA 3.90 is lower than the last trade price suggesting a short term bullish pattern building up. Long term, the 50 day EMA 4.19 is higher than current trading price depicting a bearish pattern..

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 47.71 suggesting a bearish price action.

Axsome Therapeutics (NASDAQ:AXSM) is all set to announce its earnings on Jun 06/a. As per Zack’s analyst ratings, Axsome Therapeutics (NASDAQ:AXSM) currently has an average brokerage rating of 1. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:AXSM) is $20.333 with a high of $28 and a low of $13.

As such, while we believe Axsome Therapeutics (NASDAQ:AXSM) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.