AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO)
AVEO Pharmaceuticals stock had a great day yesterday. After presenting positive data with regard to their prime candidate, tivozanib, the stock climbed in a big way. That climb was followed by more gains in early morning trading today. However, since the early morning climb, we’ve seen a correction followed by slow and steady gains. Nonetheless, I’m not concerned. I think this thing is going to climb in both the short term and long term outlooks. Here’s why…
Why AVEO Pharmaceuticals Is Likely To Climb Short Term
When it comes to short term projections, I like to look at the charts to see if anything is being said there; and I’ve got to say, the AVEO stock chart is telling me quite a bit. If you open the chart to the 5 day frame, you’ll see what looks like the image above. This chart tells us a few things. First off, the stock recently broke out. Also, after the breakout, we saw a correction followed by relatively flat movement. As a result of this movement, we’re starting to see what looks like a flag. Flags are one of the signs that traders look for when searching for the next breakout. In this case, we see a bullish flag. This is an indication that the stock is taking a rest from the last breakout and likely going to breakout again relatively soon. Because the flag is bullish, we can say that it’s more likely that the next breakout will be bullish rather than bearish.
Why I Think AVEO Is Likely To Climb Long Term
In the long run, I think AVEO has quite a bit going for itself. First off, the presentation given at the ASCO 2015 conference showed promise in tivozanib; the company’s leading candidate. The presentation outlined data from the most recent study with regard to the drug; which examined the effects of the drug on patients that suffer from metastatic Renal Cell Carcinoma. In the study, tivozanib was compared to Bayer’s sorafenib and Amgen’s Nexavar; yielding relatively positive results.
Beyond tivozanib, I think that there’s also plenty for investors to be happy about. Fundamentally, AVEO is an incredibly strong stock. After all, the company has been working to increase its pipeline and push the prospects already within the pipeline closer and closer to FDA approval. With a strong group of core management professionals, doctors, and scientists, I wouldn’t imagine that the medical innovation that’s taking place at AVEO is likely to come to an end anytime soon. So, considering the fact that tivozanib is getting closer and closer to regulatory approval, combined with the fact that AVEO has an impressive pipeline that they are continually growing, I think that we can expect to see more gains from the stock.
What Do You Think?
Where do you think AVEO is headed? Let us know in the comments below!