57logo.jpgLooks like news on successful drug trials can surely set a pharmaceutical stock for a long term growth. Anadys Pharmaceuticals, Inc. (NASDAQ: ANDS, ANDS message board) was one of the rare companies which stock rallied  yesterday, during an untamed market plummet.

In fact, the company's share price has been on an uptrend for eight days straight, showing no signs of setback. The rally started when Anadys announced its first successful trial results on their drug for Hepatitis C treatment. The company hopes their development will attract partners with money, and meanwhile their stock is attracting investors.

Strong performance in weak market is a sign of stability. The stock has rallied for some time already, so corrections might occur soon, but that doesn't yet mean the uptrend will change. And still, Level II data shows most transactions are made on full lots. That means large investors are still in play, which supports the idea this stock is not out of the rally yet.

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The stock is still in oversold position, but the thrust is weakening, so a correction should occur with the last decline. The volume looks like it diminished last week, but somewhat recovery occurred on Tuesday, giving additional thrust to the stock rally.

The market is somewhat relieved today, after a sharp decline on Tuesday, but Anadys stock fell over 10% amid the trading session, contrary to the market trends. Nevertheless, stock rallies usually do not end on the first decline. To confirm if the uptrend is coming to an end, second, follow-up decline of larger proportions would be needed.

References:

Anadys Pharmaceuticals, Inc. (ANDS) message board on HotStocked

http://www.anadyspharma.com/