Sunday, October 23, 2011

Aeolus Pharmaceuticals, Inc. (OTC:AOLS) Gives a Technical Down Sign


Yesterday, Aeolus Pharmaceuticals, Inc. (OTC:AOLS) decreased 8.89% to $0.41 on a volume of 208 thousand shares. The generated volume was much higher than the 3-month daily average which is 16 thousand shares. 

The increased trading interest towards AOLS stock was produced by a press release issued by the company on the Marketwire system and published on the OTC Markets bulletin board. 

The press release informed that the National Institute of Health through its Countermeasures Against Chemical Threats Research Network had granted a $12.7 million five-year contract to Carl White and Brian Day to continue the development of AEOL 10150 as a medical countermeasure against exposure to the poisonous chlorine gas. 

Although the market reaction was not in favor of AOLS stock yesterday, the stock still achieved an intraday peak at $0.549 before the plunge. In fact, most of the trading volume was made when the intraday high was hit whereas the closing value was generated by smaller order batches. 

For yet another time AOLS couldn’t finish above the 50-MA but at the same time the MACD is entering a sideways phase. From another point of view,  that can represent a technical safe heaven to the stock. 

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