AFFX, APRI, ELN, SQNM Among Charts to Watch
Posted on May 10, 2011 at 01:31 AM EDT
We’re going to do something a little different and focus on junior biotech and medical stocks. These stocks as a group have been doing very well lately. We’ll take a look at some of the stocks that appear to be emerging and are looking good. Affymetrix Inc. (AFFX) had a sharp increase in volume, surging Onbalance Volume, and price breaking out, moving from about the 5 1/4 range to about 6 1/2 in the last two days. On Monday this stock only jumped 4 cents, although it was up as much as 30 cents at one point. It traded 2 million shares,which is heavy volume on this stock. It looks like it could get an extension and start to run up toward the 8.00 level, the next trading target. Apricus Biosciences, Inc. (APRI) broke out of an 8-day flag. After the run from about 4.25 up to nearly 6.00, this stock then pulled down to a nice little 8-day bull flag. The rising channel since November has taken this stock up about 150%, but more importantly, it looks like it may be headed now toward the 7 – 7 1/4 range short-term, our trading target. Elan Corp. plc (ELN) has been in a beautiful rising channel. We had a swing trade on it back in April. It did very well and pulled back to consolidate. On Monday it popped 38 cents, or 5%, on 6.6 million shares. We’re looking for a move that takes it up to about 9, and then accelerating up to 10 1/2 - 11. Sequenom Inc. (SQNM), which suddenly exploded on Friday, and followed through beautifully on Monday, closing at the high end of the range, had some overhead resistance around 8.65, which is expected to be tested. If it gets through that, then we’re looking at the possibility of a 12 1/2 – 13.00 stock intermediate-term. Other stocks in our Charts for the Day are Alkermes, Inc. (ALKS), Amarin Corporation plc (AMRN), Ariad Pharmaceuticals Inc. (ARIA), BioScrip Inc. (BIOS), MAP Pharmaceuticals, Inc. (MAPP), Merit Medical Systems, Inc. (MMSI), Oncothyreon Inc (ONTY), Oxigene Inc. (OXGN), Unilife Corporation (UNIS), Vertex Pharmaceuticals Incorporated (VRTX).
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