What is Fortress Bio?
Commonly referred to as Fortress Bio, this company is a biopharmaceutical company that acquires, develops, and commercializers pharmaceutical and biotechnology products.
Although Fortress Bio’s stock (FBIO) is performing negatively currently, it could be a very good time to invest in it for the long-term.
Counter-intuitive, isn’t it? But that’s how investing works sometimes.
There are two market positions when it comes to investment: Bull market and bear market.
A bull market occurs when the economy is blooming, with low rates of unemployment, GDP (Gross Domestic Production) is high, and stocks are rising.
When people are optimistic and believe that stocks will rise, they are called bulls.
On the contrary, bear markets happen when the economy is not doing so well. Where unemployment is high and recession is approaching.
If people are pessimistic and believe that stocks are going to drop, they’re called bears.
So what’s the trick? When a stock is rising, the demand for it increases, and with time, its value may decrease.
On the other hand, when a stock is dropping, people start selling it at undervalued prices.
This is where a smart investor can predict how much the stock will rise again, and based on that, buy the stock whose price is dropping and make up to double the profit in the future. It all depends on how long you’re willing to wait.
So should you buy or sell the Fortress Biotech stock? Well, Fortress Biotech’s FBIO shares and its potential market environment has been in the bearish cycle for the last 12 months.
And generally, the stocks in the healthcare sector(s) in general aren’t the most popular for this period.
However, there’s a prediction for positive tends in the future and the FBIO stocks might be a good investment that you can make money through.
Since there’s a positive outlook when it comes to the shares, making them a part of your portfolio is recommended. Treading in bull markets is quite easy, so favoring these shares under the current circumstances is a good idea.
You should always keep yourself informed on the optimal investment strategies if you’re still new to investing.
Fortress Biotech’s FBIO can be found on the NASDAQ stock exchange.
Should You Invest?
Let’s get deeper into the financial aspects. Fortress Biotech’s FBIO fell by 4.37% over the last day from 1.83 dollars to 1.75 dollars.
The price fell in 7 of the last 10 days and is down by 18.6% for this period.
The volume also fell in the last day along with the stock, which could be a good sign as the volume should follow the stock.
Moreover, the trading volume fell by 239,591 shares and 183,691 shares in total were bought and sold for around 321,459 dollars.
The last closing price at the end of the last trading day was 1.75 dollars which is 4.37% less than the previous trading day.
Currently, there are little to no technical positive signals. Fortress Biotech is expected to have resistance from the lines at 1.91 dollars and 1.87 dollars.
As aforementioned, the fall in prices leads to a technical positive of the falling in the volume as well. Keep in mind, however, that the stock may have low liquidity in periods, and this increases the risk.
Moreover, the stock may move a lot over the course of one day (volatile stock) and with periodic low trading volume, this stock would be considered a high risk stock.
Over the duration of the last 10 days, the stock moved 0.14 dollars between high and low. In other words, 7.91%. Its daily average volatility has been a 13.35% for the last week.
A red flag is that Fortress Biotech’s FBIO is oversold on the RSI14 (22). The general risk is increased when stocks experience a big drop for a long time while being oversold on the RSI before turning.
So generally, the stock can be said to hold many negative signals and that despite the positive trend that’s expected, it’s probably going to perform weakly during the next couple of days or even weeks.