4D Pharma Share Price Flirting With a Drop to $28

Summary:
• The 4D Pharma share price appears to be flirting with the bears after the lower border of the rectangle was breached to the downside.

The 4D share price is headed lower for the second day in a row as the initial euphoria that followed its recently announced kidney cancer combo therapy trials died down. As a result, the 4D share price is down 3.48%, extending yesterday’s 4.24% loss. The stock failed to rally on the news that the company has seen some progress in the phase 2 trial of its drug candidate for treating a form of bladder cancer.

The Leeds-based pharmaceutical firm had reported that its biotherapeutic agent MRx0518 showed promise in inoperable local or advanced metastatic urothelial carcinoma when combined with Bavencio (Avelumab), a PD-L1 blocking antibody. In addition, the company said its data showed that the combination therapy worked better and improved patients’ outcomes against mono-therapy with Bavencio. 

Despite the progress reported by 4D Pharma, investors were not moved to buy the stock on a day that the markets have not seen much buying demand. Today’s decline means that the active 4D share price daily candle has violated the floor of the recent range that extends from 31.60 below to the 37.05 resistance above. Here is the 4D Pharma share price outlook.

4D Pharma Share Price Outlook

The breakdown of the rectangle on the daily chart is nearly complete. A 3% penetration close below the 31.60 support clears the pathway toward 28.05 (25 February and 11 March lows). Below this level, an additional target to the south is seen at 24.80 (7 March low). If the bears take out this all-time low, then new record lows may come in at the 20.20 and 17.75 price levels, formed by the 127.2% and 141.4% Fibonacci extension levels from the price swing of 28 March, 8 April and 4 May 2022.

On the other hand, the bulls may find some joy if they can defend the support at 31.60. A bounce and increase in upside momentum is required to take out the rectangle’s upper border. This move will bring 41.80 (5 April and 4 May 2022) into the mix. Additional upside targets are found at 45.80 and 53.00 (psychological price mark and 28 March high).

4D Pharma: Daily Chart