Yesterday, NeoPharm, Inc. (PINK:NEOL) went 14% higher to $0.32 when it announced positive news about one of its pharmaceutical products. At the same time, traded volume left the limits of the 90-day average and surged to 400 thousand shares for the day. At the close, the short volume for NEOL had reached 48% of the whole trades.
The positive wind which caressed the company yesterday was produced by a press release issued two days ago. Then, it was announced that the new drug application for the Fenyl SL spray developed by NEOL for the treatment of cancer pain was accepted by the FDA.
As it is visible on the chart, the announcement produced a positive reaction on the market. However, the major trending technical indicators are still not supporting the rise. Nevertheless, a positive sign was given by DMI where the green line pushes sharply upward increasing the distance between the negative DMI.
NEOL is a company from the pharmaceutical sector which is specialized in the field of cancer-supportive care. The main product in development by the company are the Fentanyl SL Spray and a family of dronabinol product candidates.
Unfortunately, NEOL is a limited information company and its last financial report is from last year. The lack of recent information can pour cold water on the efforts to push the stock upward, unless the company starts reporting regularly.
For now the focus of short-term traders seems to be fixed on the non-trending indicators which are not giving any guiding signals at present. The company is currently in a neutral range which is bolstered by the ADX index staying below 20. So, apparently, investors are waiting for more news from the company before some serious action happens with NEOL stock.
