Enzon Pharmaceuticals Inc (NASDAQ: ENZN)
Enzon Pharmaceuticals had a great week in the market last week. Unfortunately however, the stock is down today. Nonetheless, I’m not concerned. In all reality, I’m excited because chances are that we’re going to see another breakout relatively soon. To figure that out, all we have to do is look at the chart…
ENZN Is A Flag Waiting To Pop!
Looking at Enzon from a technical standpoint, a flag has become very clear! If you’re not used to watching technical data, a flag is very simple. As you can see in the chart above, the stock has moved into a flag shape. A steep climb created the pole and since, it’s been trading between parallel support and resistance lines. Because the flag is upright, we can tell that it’s bullish. If it was upside down, it would be bearish….OK, enough of the lesson.
Looking at the chart above, what we’re seeing is the fact that the market is taking a break before continuing its climb. In some cases, following the break, the stock will move in the opposite direction; but I don’t think that’s what’s going to happen here. The simple fact is that fundamentally, there’s no reason for the stock to change course; we’ve seen all good news!
This Is Not A Short Term Run
OK, so in the short term, everything looks great. Day traders are happy. However, in the long run, can we expect to see continuing upward momentum? Although I’m no psychic, my opinion on the question is that we will. While technical data can give you a good idea of where a stock is headed short term, fundamental data tells us more about the long-term outlook. With that said, as I mentioned above, ENZN seems to be fundamentally sound. In the last earnings report, we saw losses narrow as the company worked to reduce expenses. I’m expecting to see the same thing in the coming report. The company has been adding new prospects to its treatment repertoire and everything seems to be going well. So, in the long run, there’s no reason for this thing not to grow.
What Do You Think?
Where do you think ENZN is headed and why? Let us know in the comments below!