Technical analysis of a company’s stock charts is extremely instrumental to an investor’s success. As such, the technicals of one of the most popular stocks today — the shares of American pharmaceutical company Alexion Pharmaceuticals, Inc. (NASDAQ:$ALXN) — has now begun to take shape, and with it investors and traders alike will be better able to predict the company’s future and whether or not the company is worth investing in.

Based on Alexion’s 50 and 200 simple moving averages (SMAs), the company’s stocks are best described as bearish. The trends based around the 50 and 200 SMAs have also allowed for a more accurate analysis of how investors view the stock. While general market sentiment has made way for a negative trading environment, a secondary effect related to trading volume has caused investors to become a little most optimistic about the stock.

Next, investors consider the stock’s relative strength indicator (RSI) and Stochastic measures. These two indicators are very valuable as it allows for investors and traders to predict the overall movement of a stock. When used together, the RSI and stochastic measures show whether or not a stock is being overbought or oversold.

Currently, Alexion’s 14-day RSI is measured at 46.46%, suggesting a rather neutral movement for the stock. It is neither overbought nor is it oversold, thus it is harder to gauge which way the stock price will move. Similarly, the stochastic data seen over the past month also shows that the stock is neither overbought nor oversold at current levels with an overall score of 35.14%.

In the circumstances that the RSI and stochastic data does not provide any useful information, chart indicators that provide short-term movement and/or long-term performance can help investors and traders to predict the stock’s movement instead. Since initiating movement, short-term movement in Alexion’s stocks in the past 30 days saw a disappointing -13.20. In terms of long-term performance, the stock underperformed by -38.15% when compared to the S&P 500.

As such, the Alexion’s stocks have a higher daily unpredictability when compared to the stock’s previous volatility levels. The current volatility when measured historically gives a reading of 44.09%. The number allows traders and investors to have a better idea in the stock’s underlying price momentum as well as rate of change in the share price.

Another measure for the underlying thesis can be received by analyzing the stock’s average true range (ATR). However, ATR should be used in conjunction and not by itself. Alexion’s current ATR is at 3.33.

Featured Image: alexion