Another stock in the biotechnology and drugs complex that could be poised for a sharp rebound trade is Rosetta Genomics (ROSG), which develops and commercializes diagnostic tests based on microRNAs. This stock is off to a monster start in 2012, with shares up a whopping 70%.
If you take a look at the chart for Rosetta Genomics, you'll see that this stock exploded higher back in May, when it soared from $1.40 to $23.43 a share in just a few weeks. Following that monster move, shares of ROSG started to selloff and since late June the stock has done nothing but consistently make lower highs and lower lows. That type of price behavior is bearish technical action, and it drove shares of ROSG down from $17.35 to its recent low of $4.07 a share. That move toward $4 is staring to make ROSG look interesting again from the long side, since that $4 level is a previous support zone from its run back in May. Shares of ROSG are also attractive here for an oversold bounce, since its current relative strength index reading is now 26.54.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV