TSRO – Tesaro Pharmaceuticals

While I have not been following any news for TSRO, talks of a buyout must have wained. Over the last year its share price has given back all the gains since the beginning of the buyout talks.

When a stock has been in a downtrend for that long, usually a heavy volume event, such as the upcoming earnings on 2/27/2018 (after the market closes), is needed to reverse the trend.

The MACD Histogram on this 5 year weekly candlestick chart shows decreasing selling momentum as the downtrend continues. This is creating a bullish divergence. A bullish divergence on the MACD Histogram is the first signs of a bottoming process.

The MACD Histogram on a monthly candlestick chart (not attached) shows selling momentum that is increasing. That may change with a continued bullish divergence on the weekly chart. The weekly chart seems to be an earlier indication that the long-term downtrend is drawing to a close.