One of my favourite technical / fundamental trades of the year so far from my weekly Traders Club reports at THE STOP HUNTER; Alder Biopharmaceuticals (ALDR) has been on the radar for 9 weeks now for a 53.3% gain.

Technically and fundamentally the weakness in the stock still looks like it has a firm grip on the price.

Fundamentally as Gordon Gekko would say, this one is a dog with fleas! A stock rank of 4, a Sucker Stock and not a lot else going for it and trading in one of the weakest sectors in the US: Biotechnology & Medical Research.


So the question is - can it go further South? The fundamentals warned me to the trade; Technicals got me in and technicals will help me manage it to the finish line.

Currently all the signals are bearish using the IHA setup (Ichimoku + Heikin Ashi + other indicators). Momentum is still bearish and negative volume has picked up.

What catches my eye is where the price sits at the moment - it is back down to 11.79 which is just above the key resistance level / Fibonacci level of 10. So there is a little downside still to go where I'd expect possibly some further consolidation and where there might be some short profit taking? I would then look for breaks under this 10 level and would take the stock into new territory.

Weekly chart:


Technical Levels:



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