Aveo Pharmaceuticals, Inc. (NASDAQ: AVEO)
Aveo Pharmaceuticals stock is soaring in the market recently. I started to notice the uptrend in the stock on April 16th; so naturally, I decided to look into why we’re seeing the climb and how long it’s likely to last. Well, I’ve got news for you…if you’re looking for a piece of fundamental data that kicked off the climb, you won’t find one! It’s simply not there.
AVEO Stock Climb Is Purely Excitement Based
While these kinds of things happen in the market often, I always find it interesting when I see it. The reality is that AVEO didn’t release clinical data, hasn’t received an FDA approval, didn’t release a report of any kind, and really no news at all happened. However, for some reason, the stock is up. So, what’s the reason? Investor excitement!
For the last few days, the stock has been trading strong on high volume. That’s about it! As day traders and investors started to see the upward price movement, they decided that they wanted to get a piece of the pie; picking up a few shares of their own. As a result, the price climbed higher and a pattern started to make itself clear. With the massive gains they’re seeing, investors simply keep pushing the price higher!
Is The Aveo Pharmaceuticals Climb Going To Continue?
In the short term, chances are that we will continue to see positive news from the stock. However, unwarranted climbs like this do generate their own form of risk, and we’re seeing it in AVEO. The reality is that without any fundamental reasoning for the climb, there will eventually be a correction; and for those still in the trade, there will be losses. Think about it, at this point, the stock is overbought and continuing to climb higher.
That being said, I’m no psychic; I can’t tell you exactly when investors will get spooked by the unwarranted growth and the overbought status. So, I can’t tell you when the big drop is going to happen. However, I can say that it’s exactly what the stock is gearing up for.
What Do You Think?
Do you think AVEO will continue to climb? Why or why not? Let us know in the comments below!