Though Radius Health (RDUS) has been under selling pressure since July, it is no closer to a bottom.
Looking at this chart of RDUS, above, we can see a zig-zag decline from July through December. The On-Balance-Volume (OBV) line started to move down more steadily in November, which signaled more aggressive liquidation by longs. Selling pressure increased in January, as the price of RDUS broke below $50. There was a mathematical sell signal in January as the 50-day moving average crossed below the 200-day average, which is also known as a death cross. With no bullish divergences between the lower lows in price and the momentum study, we are not getting any signals that the decline is slowing.
This longer-term weekly chart of RDUS, above, is not encouraging, unfortunately. Prices are below the 40-week moving average and the slope of this longer-term average is turning down. The Moving Average Convergence/Divergence oscillator is bearish and the OBV line has been in a decline on this timeframe since November. The big problem with this chart is that there isn't much in the way of important support when we look back at 2014. Prices went up easily in 2014 and did not encounter much resistance. This lack of resistance on the way up means we don't have much in the way of support on the way down.
Shares of RDUS could fall or retrace to the $10 area in the months ahead. Remain defensive on this stock.