BridgeBio Pharma Inc (NASDAQ:BBIO) stock pulled back sharply from its Jan. 22 record high of $81.33, marking a three-month low after Pfizer withdrew a tafamidis patent in the European Union (EU). Shares were last seen up 5.2% to trade at $71.57 today, however. Given layers of technical support, including the ascending 100-day moving average, the stock is still showing solid strength.
According to Schaeffer’s Senior Quantitative Analyst Rocky White, BBIO is within 0.75 of its 100-day moving average’s 20-day average true range (ATR), after remaining above this level 80% of the time over the past two weeks and 80% of the last 42 trading sessions. This signal has occurred six other times in the past decade, after which BBIO was higher one month later 67% of the time with an average gain of 7%. A similar move from the stock’s current perch would put it at $76.58.
Short interest has been building, now representing 11% of the stock’s available float, or nearly eight days’ worth of pent-up buying power. An unwinding of some of this pessimism could provide tailwinds as well.
What’s more, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BBIO’s 10-day put/call volume ratio sits higher than 77% of readings from the past year.
