Biotech Alert:
The Biotech Index ($BTK) appears to be nearing a breakout.
This sector was incredibly strong on Friday.
Looking at their chart (while squinting and using your imagination) it's possible that they have formed a large cup and handle formation.
stockcharts.com[L,A]DACLYYMY[DC][PB50!A!D!B200!F][VC60][ILF!LI14,3!LG!LA12,26,9!LF!LK14]
With this in mind, I looked at a few Biotech companies.
Some noteworthy observations:
HGSI looks like they could possibly break out this week.
They are nearing their old highs and have been consolidating while the rest of the Naz was selling off this past month.
Many of their indicators are reading "Buy Me".
Their volume on up days has been increasing, lately.
PDLI has gotten sucked into some sort of momentum whirlwind.
Although the Naz has struggled in September, they have broken out big time. In this terrible market atmosphere, they are up ~40% since the beginning of the month.
I don't know how long it will last, but they certainly have a chart pattern as impressive as some of the best tech stocks.
MLNM appears to be ready to break out this week.
Again many indicators signaling BUY.
Perhaps a cup and handle breakout...
They are a Biotech leader whose chart resembles the Biotech Index.
CRA (who is one of my favorite companies) has a chart that is up down and all over the place. They appear to get caught up in these periods of strong, powerful, and short lived momentum cycles, much like RMBS.
It takes a strong stomach to hold them.
They continue to enter and exit periods of FUD, much like RMBS.
CRA's latest news may help it begin to boil again.
biz.yahoo.com
Their data base is incredibly valuable and serves much of the biotech sector.
We'll that's all I have to report from the Biotech news front.
-ClappyTheGenomeFreak
Disclaimer: The above is the opinion of a complete jackass. Do your own DD, etc. Not meant as a recommendation or anything else... |
