Somaxon Pharmaceuticals (NASDAQ:SOMX) traded in a range yesterday that spanned from a low of $3.18 to a high of $3.49. Yesterday, the shares gained 6.13%, which took the trading range above the 3-day high of $3.48 on volume of 2 million shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.
Shares of Somaxon Pharmaceuticals are currently trading above their 50-day moving average (MA) of $2.99 and should find resistance at their 200-day MA of $4.53. Look for the MA to provide support for a short-term pullback in the shares.
Somaxon Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company is focused on in-licensing, developing, and commercializing proprietary product candidates for the treatment of diseases and disorders in the fields of psychiatry and neurology.
SmarTrend expects the share price to pullback toward the $3.46 support level. Afterwards, we expect it to move upward with its peers in the SmarTrend Drug Manufacturers- Other industry.
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