Market analyst Regina Meani discusses Starpharma Holdings (ASX:SPL).
2021 has been a year in which much of our attention has been on vaccines and the companies that produced them. While Starpharma Holdings (ASX: SPL $1.34) was not involved with COVID vaccine production it is a global biopharmaceutical company and a world leader in the development of new pharmaceutical and medical products.
Starpharma’s proprietary drug delivery platform technology, DEP®, is being used to improve pharmaceuticals, to reduce toxicities and enhance their performance, particularly in the area of anti-cancer therapies. DEP® has partnerships which include oncology programs with AstraZeneca, with Merck & Co., Inc., in the area of Antibody Drug Conjugates (ADCs) and with Chase Sun in the area of anti-infectives. The company believes that these partnerships have the potential to generate significant future milestones and royalties.
From the last quarter of 2000 the price for Starpharma has oscillated within a rising trend channel which has seen the price achieve a low point at 16c in February 2009 to reach a peak at $2.52 in February this year. The current phase, within the channel, began in February 2017 and we anticipate that it will continue to develop over the short to medium term.
One of the most important factors to take into account during the development of the phase is the recent break on 10 December in the downward slide within the overall upward trend. This break suggests that the price has the potential to head towards previous barriers located at $1.50 through to $1.70. As this barrier zone is approached the price may pause and pullback creating more buying opportunities. Support is located at $1.20-25 but this will rise with the price to $1.40 once it reaches the $1.50 barrier.
At this stage it is difficult to determine whether the share price has gained enough momentum to power through the $1.50-70 zone and until this area is cleared the price is likely to experience more swings within the current phase. Investors may wish to wait until the barrier zone is overcome. Traders should use the support levels at $1.40, $1.20 and then $1.10 as guides with the primary risk level at 98c.
Once the $1.70 level is cleared it would indicate the next major swing higher for the stock to $2.25 and then to test the peak around $2.50 with the potential to push higher towards $2.80-3.00 and possibly significantly beyond.
Your Technical Analyst would like to wish all her readers a Very Merry Christmas and A New Year Filled with Good health and Many Opportunities.