InterMune is a biotechnology company focused on lung diseases. InterMune’s shares are traded on Nasdaq under the ITMN symbol and can be found in the Healthcare sector. Over the last couple of years, ITMN stock price has experienced huge spikes, either downwards or upwards. For instance, when FDA rejected InterMune lung drug in 2010, the stock plummeted from $45 per share to $10 in just a single month! Then came Esbriet Approval in European Union, a drug that is used for treatment of a fatal lung disease (IPF). ITMN shares surged up to $50 once again! Since then, InterMune continually reports lower quarterly EPS and company’s net loss widens, dropping ITMN shares down to $12. It seems like it’s time for the biotech company to make an announcement for a new drug or an FDA approval. History repeats itself after all.
Traders can easily point out crucial support and resistance levels on the ITMN weekly stock chart. Well, even a child can draw 2 horizontal lines at $50 and $10! If you check out the monthly chart including all stock trading data from the previous 12 years, you’ll also see that ITMN stock found resistance at $50 price level back in 2000 and 2001, while $10 provided support in 2004 and 2005. Just don’t ask me what news led to several spikes in the ITMN stock charts in the last decade between those two levels. I’d guess it would have been drug approvals or rejections. Therefore I’d expect good stock news for InterMune the next few months, something that will surely benefit their shares and drive ITMN stock price away from the support level.