Trading Strategy for Inovio Pharmaceuticals
If you had invested $10,000 in Inovio Pharmaceuticals (symbol INO) at the beginning of this year, your investment would now be worth over $55,000.
While that's an impressive figure, it tells us nothing about where the stock is headed next. Let's learn about the company, and then check out its chart.
Inovio manufactures products for the administration of vaccines. The pharma company just received a $71 million contract from the U.S. Department of Defense for its Cellectra device.
What is Cellectra? It's a small, portable device that runs on AA batteries. Cellectra uses a brief electrical pulse to open small pores in a cell, allowing plasmids to enter. A plasmid is a genetic structure within a cell that can replicate independently of chromosomes.
Will Inovio continue to inject excitement to the market? Let's go to the chart to find out.
Inovio broke out to multi-year highs yesterday on heavy volume. Critically, the stock closed above its March 9th high of $19.36 (green dotted line). That price would make an excellent entry point on a pullback.
Traders should sell if the stock breaks below its bullish trend line (red dotted line). That trend line closely parallels the stock's 50 Day moving average (purple line). A break of both the trend line and the 50 Day moving average would provide two excellent reasons to sell.
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