Array Biopharma Inc. (ARRY) shares soared more than 17% during Tuesday's session after its Phase 3 BEACON CRC clinical trial met both primary endpoints of confirmed objective response rates. The clinical trial evaluated the combination of BRAFTOVI, MEKTOVI and ERBITUX in patients with BRAFV600E-mutant metastatic colorectal cancer following one or two prior lines of therapy. The company intends to submit the results for marketing approval during the second half of 2019.
Prior to market open, the stock fell about 5% amid concern about the number of patients enrolled in the randomized trial. Investors were also concerned about the lack of statistically significant separation between the BRAFTOVI Doublet and BRAFTOVI Triplet. These concerns were largely alleviated following management's conference call with investors to discuss the clinical trial results. Analyst could continue to weigh in on the results in the near term.
From a technical standpoint, the stock broke out from reaction lows to retest highs at around $25.00 during Tuesday's session. The relative strength index (RSI) moved toward overbought territory with a reading of 62.18, but the moving average convergence divergence (MACD) experienced a bullish crossover following a prolonged decline. These indicators suggest that the stock could see some near-term consolidation before making a move higher over the intermediate term.
Traders should watch for a breakout from prior highs of around $25.00 into new bull territory. While there could be some near-term consolidation above these levels, traders could see a resumed bullish trend higher after a largely sideways start to the year. If the stock fails to break out, traders could see some movement within its existing price channel with a high of $25.00 and a low of $21.00 over the coming sessions.
The author holds no position in the stock(s) mentioned except through passively managed index funds.