Shares of La Jolla Pharmaceutical returned 50% in 2015, impressive considering the S&P was flat and the biotech index rose 11% during the same time period. But from a technical perspective, it doesn't look like shares of La Jolla will fare as well in 2016. Shares of LJPC are poised to fall up to 50% if this bearish head and shoulders pattern plays out.
The head and shoulders pattern has been six months in the making, and after shares fell more than 7% to start off the new year, they dangerously approached dual neckline and horizontal support in the $24 - $25 range. A decisive break below that support range would lead to a measured move price target of $10 - $11.
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