During Thursday's Lightning Round segment of Mad Money one caller asked host Jim Cramer about Veru (VERU) . "They need to get into Stage III trials before we can get excited about them," said Cramer about this oncology biopharmaceutical company.
Let's check out the charts and indicators and hope they do find treatments for prostate and breast cancer.
In the daily bar chart of VERU, below, we can see that the shares came out of a quiet base around $2 to explode to the upside reaching $24 in just a few weeks. VERU has been correcting lower since early February and the decline does not appear to be over. Prices are trading below the declining 50-day moving average line and the cresting 200-day moving average line.
The On-Balance-Volume (OBV) line has been steady the past four months or so but I do not expect that to continue. At some point traders should become more aggressive sellers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.