Nearest Resistance: $17
Nearest Support: $15.50Catalyst: German Drug Ruling Small-cap drugmaker InterMune (ITMN) is another name that's rallying hard today, moving higher off of news that Germany's Federal Joint Committee decided ITMN's lung disease drug, Esbriet, offers additional benefits to patients. That ruling means that InterMune will be able to negotiate with healthcare providers over offering the orphan drug to German patients. For traders, ITMN's price action today is bumping shares against the $17 resistance level that's acted like an upside barrier for the past several months. The firm's combination of higher lows and horizontal resistance makes this setup an ascending triangle, a bullish pattern that becomes buyable once resistance has been broken. I'd recommend going long if ITMN can hold above $17. When that happens, it makes sense to keep a protective stop just under the 50-day moving average. To see these stocks in action, check out the at Most-Searched Stocks portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.