Stock has more than doubled from its mid- April lows since the positive news on the Lorcaserin has been published. It is moving strength to strength and is on a vertical upswing. Stock is trading at 38% premium then its 200 day moving average. This is a huge premium which needs mean convergence. The RSI indicator is overbought and is currently at 79+.
If stock corrects, which it should, one should either buy closer to nearest average and maintain the same average as stop lost. If stock goes below its moving average(200 day) then wait and let it cross back its 200 day average to re-enter.
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