Avadel Pharmaceuticals plc ( AVDL) is a biopharmaceutical firm based in Ireland. The company has received tentative FDA approval for the "once-at-bedtime investigational formulation Lumryz to treat cataplexy and excessive daytime sleepiness caused by narcolepsy."
My friends in the drug industry had to explain this to me and that the company is seeking full approval. I explained the charts to them.
In the daily bar chart of AVDL, below, I can see how the shares have risen from "penny stock" levels in May and June to build a base in the $5 area in recent months. Prices are trading above the rising 50-day and 200-day moving average lines.
Trading volume is hard to see but the daily On-Balance-Volume (OBV) line has been steady. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of AVDL, below, I can see the past three years of price action. The decline below $5 in May and June looks like a temporary "shakeout." AVDL now trades above the rising 40-week moving average line.
The OBV line shows a slow rise from June. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of AVDL, below, I can see that the shares reached an upside price target in the $10 area.
In this weekly Point and Figure chart of AVDL, below, I used a five-box reversal filter, which shows us a price target in the $23 area.
Bottom-line strategy: I have no special knowledge about when or if AVDL will get permanent FDA approval so there is risk. Traders could probe the long side of AVDL on a dip to around $9 if available. Risk to $7. The $23 area is my price target for now.