Is Amicus Therapeutics Headed for a Breakout? A resistance line and an ascending support line has formed in the chart of Amicus Therapeutics Inc. (FOLD). If the stock breaks through this resistance level, a breakout is expected....
By Christian Tharp •
This story originally appeared on StockNews
A resistance line and an ascending support line has formed in the chart of Amicus Therapeutics Inc. (FOLD). If the stock breaks through this resistance level, a breakout is expected. Read more to learn how to take advantage of this trading setup.
Amicus Therapeutics Inc. (FOLD) is a biotechnology company focused on discovering, developing, and delivering medicines for people living with rare metabolic diseases. It has a portfolio of opportunities, including oral precision medicine for people living with Fabry disease, a clinical-stage treatment paradigm for Pompe disease, and a rare disease gene therapy portfolio.
The company's Galafold therapy received label expansion in the EU over the summer. This is expected to increase sales. Plus, its lead pipeline drug, AT-GAA, is being evaluated for Pompe disease. The FDA is expected to make a decision on AT-GAA some time next year. If approved, the drug has a lot of potential for growth.
FOLD has a current ratio of 4.3, indicating it has more than enough liquidity to handle short-term obligations. Over the past three years, sales have grown an average of 165.6% per year and revenues are expected to rise 37.2% over the next year leading to a Growth Grade of B in our POWR Ratings system.
However, the stock appears overvalued with a price-to-book ratio of 14.9. This is well above the industry average of 8.1 and the S&P 500's 5.0. FOLD has been showing mixed performance since February, but has been trending up over the last few days. This is evident in the chart below.
Take a look at the 1-year chart of FOLD below with my added notations:
FOLD has stalled at $12 resistance (red) more than once over the past couple of months, while also forming a trend line of support (green). These two lines form an ascending triangle in the stock.
Click Here to Read the Greatest Trading Book Ever Written
Eventually, FOLD will have to break either the $12 resistance, or the triangle support. A long trade could be made on a break above the $12 resistance level. A break below the trendline would be an opportunity to enter a short trade.
Want to Discover More Great Trades?
What is better than finding the 1 attractive stock in this article?
Discovering 5 timely trades...like the ones in this new special report. Click below to claim your free copy now!
FOLD shares were trading at $11.82 per share on Wednesday morning, down $0.09 (-0.76%). Year-to-date, FOLD has declined -48.81%, versus a 24.52% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.
The post Is Amicus Therapeutics Headed for a Breakout? appeared first on StockNews.com
