Biotech stocks dominate our list of top charts today. Here are four to watch.
This stock has had a fantastic run in recent months. It's now trading for more than $11, up from less than $4 in March. The stock spiked earlier this month after the company reported second-quarter results that exceeded analyst expectations and revealed information about the launch of its new kidney cancer drug. The stock pulled back from that high, forming a wedge, but broke out of that wedge in recent sessions. On Monday it was up 44 cents, or 4%, to $11.44 on 7.4 million shares, the best volume on an up day in a couple weeks. If it can get through the recent spike high at $11.66, the stock could run to $12.75-$13.00 in the short term.
Nektar looks ready to break out of a bullish flag formation. The biopharmaceutical stock on Monday advanced 57 cents, or 3.3%, to $17.83 on no news, with volume increasing to 785,097 shares traded, the best in two weeks. The move put the stock right up against the declining tops line of the three-week flag. A break above recent highs in the $18.00-$18.10 range could cause the stock to spike to $20 and then maybe even $22.50-$23.00.
This stock is consolidating within a steep upward channel off its June low at $4. The biopharma stock looks ready to break out of the two-week consolidation. On Monday it rose 15 cents, or 2.2%, to $6.97 on volume of 1 million shares. Watch for a follow-through above recent highs in the $7.05 area, beyond which the stock could run to the $7.75-$8.25 range in the near term. It could go as high as $11 on an intermediate basis.
Puma is in a strong uptrend, having formed a head-and-shoulders bottom off its May low of less than $20. The stock had an excellent day on Monday, rising $4.56, or 9%, to $54.65 on 1.2 million shares. The move came on news that the European Medicines Agency will begin formally reviewing its breast cancer treatment. The stock reached a key resistance area near its intraday high at $55.43. A punch through $55.50 could get the stock up near $68, which is the next target.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.