Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) – Zogenix, Inc. (NASDAQ:ZGNX) saw a steady gain in its last trading session on Wednesday. The stock saw a rise of 20.51% and managed to close at its day’s high of $2.82. The stock had been on a downward bias since the early weeks of 2014, the stock saw a healthy gain on Wednesday.
Zogenix, Inc (NASDAQ:ZGNX) managed to close just shy of its 50 day moving average which stands at $2.83, As the daily charts provide with a clear picture, the momentum indicators of stock were in the oversold region and took a upward turn on Wednesday. This sign of a trend reversal, the relative strength index also saw a sharp upward turn on Wednesday. This shows there is a possibility of a trend reversal for the stock, the stock may maintain its momentum and recover its losses of the previous weeks.
From the current levels Zogenix, Inc. (NASDAQ:ZGNX) has a very strong resistance around $3.70 levels, a breakout above this level could see the stock rally to $4.75 levels. On the downside the stock has a good support around $2.25 levels, a close below this level could see the stock test $1.55 levels.
The weekly charts suggest the stock is seeing a trend reversal and could gain from the current levels, The relative strength index on the weekly charts are giving strong buy signals, this indicates the stock should maintain its upward bias and see recover its previous losses.
Zegonix Inc. plans to lay off 37% of its work force in order to gain liquidity. Zegonix Inc. is awaiting approval of U.S. Food and Drug Administration (FDA) for its new drug Zohydro ER, this drug is meant to treat chronic pain. The layoffs will result in a reduction of work force by 55 employees of its total 148 employees.