KERX (Keryx ) stock and Pending Class Action Lawsuit
Since so many follow this stock thought I’d post an updated chart for those that didn’t see the after hours action on Friday Feb 1st, 2013.
At approx 7pmEST Friday the lawfirm of Faruqi & Farugi had posted that they filed a class action lawsuit . Case no 13, Civ 0755 for shareholders who bought the stock KERX ( Keryx) between June 1st, 2009 and April 1, 2012. Link to the article : http://www.faruqilaw.com/kerx
So this class action is based on that April 2012 gap down March 30, 2012 from $4.98 to $1.74 on April 2nd, 2012.
On Friday just after 7pm EST KERX ended the after hours trading session at $6.93 . We will have to wait and see what it will drop down to on Monday morning. Most likely towards $6 but if people begin to panic could hit sub $6 towards $5 since that’s the next major support. So definitely watch $6-$5 closely. We had talked about that being a key level (in our chatroom) especially into the fib levels of $5.50-$6.30 area on any decent drop.
Even thought markets were strong on Friday, KERX kept selling off all day but what’s interesting is the 3:30pmEST sell off which was on heavy volume & continued dropping into afterhours trading. Its as though someone was tipped off to this class action lawsuit. The stock had run up pretty huge the past week and was the top gainer for the week for NASDAQ stocks. I had actually done some scans earlier in the day on Friday and KERYX was # 1 weekly % gainer.
Check charts below for notes & KERX Stock price movement on 5 min with Afterhours and Daily chart with Fibonnaci retracement levels.
We had highlighted KERX in our newsletter last week and some traders in the chat played some puts to benefit from the drop just on the chart setup not knowing that there would be a lawsuit
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******click on the charts below to see the notes bigger, then you can come back to this page
Here is another chart I had done for our members on KERX on Friday Feb 1st before the afternoon drop when it had just broken down sub $8 to $7.80
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