Sorrento Therapeutics, Inc. (SRNE) recently closed with fall of -1.27% to its 20-Day Simple Moving Average. This short time frame picture represents a downward movement of current price over average price of last 20 days. Now moving toward intermediate time frame, 50-day Moving average is more useful at showing position trading trends lasting 50 days. Shares of SRNE moved downward with change of -16.05% to its 50-day Moving average. This falling movement shows negative prices direction over last 50 days. The bulls say this is a great opportunity to buy Sorrento, citing a reasonable price for a solid, growth stock. Among the near-term catalysts that can boost the stock value, analysts note great strategic partnerships and a strong pipeline. Many traders are betting that Sorrento Therapeutics will become a key player in the immuno-oncology (I/O) space. The bears are skeptical about the convertible debt that the company incurred, as well as less attractive financing deals. J Capital Research asserts that the financing deals have benefited a select group of investors who are close to the CEO. Good to buy?
I use weekly charts, I just see lower highs. These are types of stocks I have had the worst losses, use to buy them even though financials were screaming "debt". If you have to buy it, the Sept Puts are at .45 so you could at least hedge.