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Survival Of The VIVUS

|About: Vivus, Inc. (VVUS), Includes: TEVA

Summary

Critical Bullish 50 day moving average crossover

Bullish MACD breakout indication

Settlement with Teva on generic weight management drug catalyst for continued momentum

     Shares of VIVUS, Inc. $VVUS closed on Wednesday with a bullish 50 day moving average (NYSE:MA) crossover as the 50 MA $1.15, crossed the 150 MA $1.14. The stock traded up for the day 3.17% to $1.30, 13.07% away from reaching the 52-week high of $1.47. See the chart below for the one year share price and moving average indicators (www.finance.yahoo.com):VVUS Chart      VIVUS 50 day MA recently crossed the 100 day MA supporting continued momentum in the traded shares. There is also a bullish indication in the moving average convergence/divergence (MACD) technical analysis chart, as the MACD line crosses the signal and presenting beginning stages of a positive divergence curve.

    As technical analysis provides insight into the traded shares activity, it is also noted that VIVUS, Inc. recently settled with Actavis Laboratories on July 6th. Actavis, a subsidiary of Teva Pharmaceutical Industries Limited TEVA, wants to engage in selling VVUS weight management drug Qsymia and will not be able to do so until December 1, 2024. If Actavis sells the drug before the agreed date, then they will have to pay royalty on sales of the generic drug to VIVUS, Inc. This news is a positive catalyst of the more recent share price momentum, further supporting the probability of VIVUS, Inc. reaching higher highs in the nearer term.

Disclosure: I am/we are long VVUS.