Neurocrine Biosciences (NBIX)

Company

"Neurocrine Biosciences, Inc. is a biopharmaceutical company focused on neurological and endocrine diseases and disorders. Our product candidates address some of the largest pharmaceutical markets in the world including insomnia, anxiety, depression, irritable bowel syndrome, endometriosis and CNS related disorders." (company website)

NBIX 3-month stock chart

Buy

NBIX has been bumping along around $12 since late June 2006, but it has lately shown signs of wanting to move higher.

  • Price momentum (PPO) — picked up sharply
  • Trend (ADX) — very strong, and buying pressure (+DI) is well above selling pressure (-DI)
  • Money flow (CMF) — brisk inflow for past month
  • Relative strength (RSI) — very strong
  • Volume — increasing since late December with many higher-volume up-days
NBIX 2-month chart

Based on technical analysis, MarketEdge calls NBIX a "strong buy" in a "strong upward trend."

Sell

loss Bottom line
-12%

I really don't know where NBIX is going — I've held out hope that it was recovering from the market turmoil at the end of February and beginning of March, but having jumped back above the 50-day moving average two days ago, it hasn't been able to hold there. This makes me think that the next most logical move is further down. Once a stock bounces off a Bollinger band, it tends to go all the way to the other one. That would risk a far bigger loss for me.