Stock Of The Day: Bull Trap Snares SIGA Technologies On Heels Of Mpox Study

Core Viewpoint - SIGA Technologies is experiencing significant stock volatility due to recent developments related to Mpox treatment trials, which have led to both sharp declines and rebounds in share prices [1][2]. Group 1: Stock Performance - SIGA shares fell nearly 20% following disappointing trial data for a drug to treat Mpox on August 15 [2]. - The stock rebounded more than 15% early the following Friday, indicating high trading activity [2]. Group 2: Market Dynamics - A "bull trap" is identified as a situation where a stock appears to break out but is quickly overpowered by sellers, leading to a price drop [1][6]. - SIGA has faced resistance around the $10.50 mark, where previous attempts to break through have resulted in price reversals [3][6]. - The dynamics of resistance and potential breakouts suggest that SIGA may be entering a downtrend, as sellers may return to the market after a false breakout [4][6].