Why This Trader Is Worried About Jazz Pharmaceuticals

Christian Tharp was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

In a special segment on the #BestOfBiotech, CMT Christian Tharp looked into several biotech stocks on his radar. Among them was Jazz Pharmaceuticals plc (NASDAQ: JAZZ), a stock about which he is worried.

Shares of Jazz have escalated over the past year (about 36 percent), or year and a half (about 119 percent). Tharp explained, “you have got yourself a test in September, you’ve got a test in November, you’ve got a test in December, you’ve got a test in March… So Jazz… the market is telling me that topside resistance matters. So, that topside resistance sits roughly around $193; we are sitting at $190 [at the time of interview].”

Related Link: How Much Further Can Jazz Pharmaceuticals Fall?

He continued, “Of course there is no guarantees, but I would say: if I was in Jazz, I’d certainly be putting it to protective stops, and looking at possibly locking in gains once we push around that $193 mark.”

Tharp concluded, “If we break through it [the $193 mark], great. Party’s on. But, if you go with probabilities, with what tends to happen… Well, what has happened every time we have approached that resistance [is] we’ve dropped. And we’ve dropped a lot. So, I’d be cautious with that one.”

Shares of Jazz Pharmaceuticals were down about 1.6 percent on Friday.