Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 200.29

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3:59 PM EST

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To: Henry Niman who wrote (8368)	10/3/1997 6:56:00 PM
From: Scusami	of 32384

Henry et al: Here is my TA update for LGND as of Thursday's Oct. 2nd close: Upon reviewing some of the posts I missed while vacationing in Europe, I noticed that several of you were drawing comparisons with Allergan (AGN) and were speculating on its possible acquisition by JNJ. I thought that I should look a little closer at AGN. So, I have overlayed its chart pattern on LGNDs. I was surprised that the correlation (since late March) is over 90 percent with respect to slope of the average trend. Also, the deviations of each with respect to its (average) slope is quite comparable in amplitude, timing and direction. This might add some credence to the thought that whoever is interested in buying/selling one is similarly interested in the other. In trying to ferret out which is leading which, it's not that clear. Retracements in AGN seem to be slightly less severe than those of LGND. As of now AGN is above its slope line whereas LGND is at its line. This would lead me to believe that LGND is going to trend higher to keep up with AGN. LGNDs daily charts tell me this: 50 day moving average (DMA) = 14.48 100 DMA = 13.62 200 DMA = 13.08 All these MAs are trending higher. Stochastics: both the slow and fast %Ks are below 25 - an oversold condition. They are sitting at a level that usually has been a bottom or basing area. Relative strength is trending lower and is at 58 on a 14 day ave. It had been over 70 a couple of weeks ago (when the price was in the 17 area) which usually indicates a short term top. LGND usually reverses to the upside when RSI is around 40 or less. Williams %R: Larry Williams' variation of stochastics is at 89. When %R is greater than 80 a buy signal is produced. - buy MACD (momentum) is at -0.17 and has been in a decline since early Sept. It is at a negative level equal to past bottoms. Once it turns up it would generate a buy signal. We're close! Volume: MA = 336,600 The slope is down (also since early Sept.) and down days are of less magnitude than up days. Reduced buying interest? Chaiken's Volume Accumulation (VA): Went negative on 10/2 but had benn trending lower since mid Sept. Granville's On Balance Volume (OBV): Still trending higher. Bullish Point and Figure Chart: Long term I'd conclude we're heading to the 19 to 25 area. The most recent run up has not reversed as yet on a 1/2 point reversal chart. If it does, the support appears to be in the 14 area. My guess is that a reversal would only go down to the 15 1/2 area. Several reversals (2 point swings) around here would reinforce the potential for the above 20 area later and would be healthy. Weekly charts: Longer term charts indicate a topping wrt stochastics, MACD, VA and OBV. Conclusions: We may get some short term strength here, but it may only result in a trading zone in the 15 1/2 to 17 1/2 area. PS: LGND closed on Fri at 16 5/8 up 7/16 and AGN at 36 1/8 Up 1/4. Anyone know anything about the change in command at AGN reported after todays close on CNBC? Scusami

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