ZIOPHARM Oncology investors must be excited at this point. In fact, throughout the month of September, the stock has traded up in a big way. Now, the big question investors are asking is, “How high can this stock go?” Today, we’ll try and pinpoint the reason for the gains we’ve seen this month and how high ZIOP is likely to go.
Why ZIOP Has Seen Such Strong Gains
If you look back to August, the picture for ZIOP and its investors isn’t so pretty. In fact, August was a rough month for the market entirely. Ultimately, global economic concerns caused the US market to head for correction territory and, while many stocks are still dealing with correction blues, it seems as though ZIOP has pulled out early. With that said, the reason for the gains we’re seeing is purely technical in my opinion.
In the depth of the correction, ZIOP reached support at $7.94 per share. In these cases, it’s important to remember that price movement in the market often happens through a series of overreactions, and that’s exactly what the declines proved to be. Ultimately, when the stock reached $7.94, it reached a critical support level and had nowhere to go, but up – and that it did. However, the increases started to happen while the correction was in full swing. This caused a bit of investor excitement that kept the momentum rolling. All the while, investors continued to have more and more reasons to be excited as analysts reiterated buy ratings and revised EPS estimates upward for the coming earnings report.
Can ZIOPHARM Gains Continue?
In my opinion the answer is yes. The reality is that in the market, investor excitement is an incredibly powerful thing and investors have plenty of reasons to be excited. With that said, I’m expecting to see growth at least to $13.96 per share over the next few trading sessions. While I would be a bit wary at this point, I wouldn’t be surprised if the stock broke this resistance level as well.
What Do You Think?
Where do you think ZIOP is headed and why? Let us know in the comments below!
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