Leap Therapeutics, Inc. (NASDAQ: LPTX) was down 5% yesterday but is up almost 1% today in pre-market trading. In January, LPTX surged 20% when they signed an agreement with Chinese biopharmaceutical company, BeiGene, Ltd.
The agreement gave granted BeiGene an option to buy exclusive rights to develop and sell Leap’s anti-Dickkopf-1 (DKK1) antibody, DKN-01, in Asia (excluding Japan), Australia and New Zealand. This helps give a much-needed boost in cash to LPTX.
LPTX is creating therapies of its pipeline candidate, DKN-01, studies to for hepatobiliary, esophagogastric, gynecologic and prostate cancers. These would be used on other PD-1/PD-L1 inhibitors.
Currently, LPTX stock is in correction territory and with most of the technical signals being negative. The current price is near the August peak of $2.40. Specifically, the 5EMA, 10EMA, and 20EMA are signally “sell.” However, the 50EMA and 100EMA are signally “buy.” Oscillators are neutral or mixed. The support is $2.15, and resistance is $2.40.
Is LPTX Stock A Buy?
Leap Therapeutics stock is an extremely high risk but maybe a “buy” if there are positive signals from oscillators or company news. LPTX would jump up if the company announces more deals or distribution. Right now, the LPTX is treading water but could be a huge winner if the company’s plans are a success.
Stock Market Today
We expect to have another crazy day in the market today. The biggest mover will be “stimulus” talk from DC.
Our key takeaways:
- Strong Equity Rally on Hopes of Fiscal Stimulus From Washington
- Two-Way Volatility Likely to Persist in the Near-Term
- Sentiment Indicators Reach Levels of Extreme Fear
- Health Care Providers Show Increasing Relative Strength
- Futures Point to a Higher Lower Today
The wild swings continued yesterday as stocks whipsawed between gains and losses before closing on the highs, and with a daily gain on the S&P 500 of 4.94%. The major indexes opened solidly higher yesterday after Wall Street saw its worst declines since the financial crisis on Monday. President Trump and VP Pence announced “very dramatic action to support the economy” late on Tuesday, which further fueled hopes for significant, coordinated stimulus efforts to combat the negative effects of the coronavirus.
That news, paired with Chinese President Xi Jinping visiting Wuhan where the coronavirus outbreak began, offered a vote of confidence that the virus has been contained in China and provided hope that the spread of the virus could be slowed globally.
Tom, aka T Rex, is seasoned financial pro that cut his teeth on the Chicago trading oil futures in 1995. He has bachelor’s degree in finance and management. In less than 3 years he bought his own seat and set up shop on the exchange. For the next 10 years Rex traded his own account and some institutional accounts. In 2017, he decided to move to Florida and focus on educating traders and writing for financial websites.