After one of its largest percentage moves that the pharmaceutical sector has ever made back in November 2016, the sector has proverbially been "stuck in the mud" and has gone relatively nowhere since its largest percentage move ever. Even high-flyer Tesaro (TSRO) has seen some selling pressure after making its huge run-up. Tesaro (TSRO) is a company that is categorized into the pharmaceutical sector.
In my last full-length article for Tesaro (TSRO), I anticipated TSRO's share price to continue its ascent but mentioned downside risk to the $143 area. The previous article can be quickly accessed here "3/11/2017 – Tesaro (TSRO) Stock Chart Review".
Tesaro (TSRO) - Fibonacci Retracement Tool
This first chart is a 2 year weekly chart for Tesaro (TSRO). I've placed a Fibonacci Retracement Tool on its entire uptrend that precedes its current downtrend. The main use for Fibonacci Retracement Tools is to calculate support areas after a stock's share price starts to consolidate or correct.
Based on the length of the current downtrend, I anticipate that TSRO's uptrend was complete (it completed a Bullish Impulse wave pattern). Because of that, the Fibonacci Retracement Tool was placed on the entire uptrend and not just the most recent portion of it.
The minimum 38.2% retracement of TSRO's uptrend has been made. The 50% retracement area at the $111.23 price level is what I would consider…...
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