NPS Pharmaceuticals (NASDAQ:NPSP) — This small-cap biotech company is developing therapeutics for gastrointestinal and endocrine disorders, as well as neurological diseases.
On Nov. 9, Gattex reported a much smaller quarterly loss than the year-ago period — $3.3 million this year vs. $12.3 million last year — and revised its outlook. The company also highlighted an FDA advisory committee’s recommendation of Gattex, a treatment for short-bowel syndrome. S&P raised NPSP’s 12-month price target to $16.
The stock opened a gap and ran to over $11 from $9.50. Since then, it retreated to its 50-day moving average and intermediate uptrend line at $9. This closed the gap that was opened and establishes a base for the stock to move above resistance at $9.80.
A close over $9.80 should trigger a trade to $11. Long-term buyers should take positions now in anticipation of a more significant long-term advance.