Chart Review – Sirtex (SRX)

This is a weekly candlestick chart from Metastock. In the time-frame of five years CEO Mr Gilman Wong oversaw an amazing climb in the share-price from $5 to $40.

I have never been a shareholder of Sirtex but have followed its fortunes.since January 2014 when a reader asked me what I thought of its future prospects. Having been a medical practitioner for more than 40 years, it was appealing for me to be able to study the company in some depth, and form an opinion taking into account the meteoric rise of its share price.

In the process, I have written seven previous posts. For anyone interested the references are:

https://technicality.me/2014/01/15/sirtex-succeeds/

https://technicality.me/2015/03/22/chart-review-update-on-sirtex/

https://technicality.me/2015/04/16/sirtex-surmisings/

https://technicality.me/2015/04/20/sirtex-sinks/

https://technicality.me/2015/05/17/the-sirflox-trial-a-perspective-on-the-study-abstract-part-1/

https://technicality.me/2015/05/20/the-sirtex-trial-part-2/

https://technicality.me/2015/05/20/where-to-for-sirtexs-share-price/

 

srx-wk-dec-16

Advice your stock-broker is not likely to give you!!

In my experience brokers have no difficulty coming up with good buying suggestions but mostly avoid  attempting to let you know when it is best to sell. The reality is that it is not an easy task. We need to remember that brokers have divided loyalties with corporate clients needing to raise capital, and existing shareholders likely to be angered by a sell recommendation. Brokers instinctively discourage shareholders from creating a stampede for the exit doors.

Watch the charts!!

This is why the onus is on you to make up your own mind. If you do not wish to loose money unnecessarily, Watch the Charts. They are objective and frequently give warning of imminent danger. They reflect existing market sentiment, the likely driver of price movement in the near future.

Sirtex

The weekly chart of SRX shows a head and shoulders pattern. The inference is that there has been a change of trend and even if there is an immediate bounce, lower prices are likely. This being the case, the safe option for retail investors is to sell on the rebound. Stop/loss selling is indicated if the share-price falls below $15.

Sirtex has been a market darling for a long-time with some analysts suggesting a target of $80 for the share-price. Doubtless this is possible, but Sirtex is a single product company  providing palliative radiotherapy for liver cancer of marginal benefit.  Sales are beginning to decline.

Disclaimer

I wish to emphasize the importance of readers not relying on my posts for guidance. They should undertake their own research and obtain a professional opinion for confirmation.

 



Categories: Chart Review, Technical Analysis, Trading opinion

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