Some Traders Are Very Bearish on Hutchison China MediTech Limited (HCM) After Forming Wedge Down

July 13, 2018 - By Jenna Rose

Hutchison China MediTech Limited (NASDAQ:HCM) Logo

The stock of Hutchison China MediTech Limited (HCM) formed a down wedge with $28.71 target or 9.00 % below today’s $31.55 share price. The 6 months wedge indicates high risk for the $4.19B company. If the $28.71 price target is reached, the company will be worth $377.46M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock decreased 0.16% or $0.05 during the last trading session, reaching $31.55. About 11,437 shares traded. Hutchison China MediTech Limited (NASDAQ:HCM) has risen 45.35% since July 13, 2017 and is uptrending. It has outperformed by 32.78% the S&P500.

Another recent and important Hutchison China MediTech Limited (NASDAQ:HCM) news was published by Streetinsider.com which published an article titled: “Form 6-K Hutchison China MediTech For: Jun 29” on June 29, 2018.

Hutchison China MediTech Limited, a biopharmaceutical company, engages in the research, development, manufacture, and sale of pharmaceuticals and healthcare products primarily in the PeopleÂ’s Republic of China and Hong Kong. The company has market cap of $4.19 billion. It operates through Innovation Platform and Commercial Platform divisions. It currently has negative earnings. The firm provides drug research and development services; and develops, makes, distributes, markets, and sells prescription and over-the-counter pharmaceutical products, and consumer health products under the Baiyunshan and Shang Yao brands.

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