NEW YORK (TheStreet) -- Stocks are rebounding Friday after the market's bounce off Thursday's oversold conditions. With buying opportunities abounding, here are charts to watch from four biotech companies, two of which got a big boost from the anti-Ebola drugs they are developing.
Achillion Pharmaceuticals (ACHN) - Get Report has provided some strong swing trades and looks to be on the verge of another move up. It came down for about six weeks, consolidated for two weeks and on Thursday popped 77 cents, or 7.6%, to $10.89 on 4.2 million shares. That's the best volume in a week.
More importantly, it closed right at the resistance line, which could lead to a move to the $12.25 range. The secondary target is $13.75, and then it could be on its way to the mid-to-high teens. Achillion stock is 4% higher Friday.
Chimerix (CMRX) - Get Report is in a beautiful rising channel. It retreated off the channel top a week ago and then bounced, retested and has been spectacular, having gone from a low of $28.70 to Thursday's high of $36.45 in just a couple of days. It didn't hurt that the company said Thursday it plans to conduct a clinical trial of its experimental antiviral drug in patients with the Ebola virus. Thursday's close at $35.40 was the highest close ever for the stock, which looks like it has more upside, particularly if the top of the channel gets taken out Friday in the $37.50-$37.75 range. The stock is down close to 2% Friday.
NewLink Genetics (NLNK) - Get Report has also been fabulous, and the company is also involved in the fight against Ebola. On Monday Canadian health officials said they were beginning early-stage clinical trials on an Ebola vaccine that is licensed to Newlink.
The stock has had explosive moves in the last four sessions, from $17.33 to a high of $33, in four days. What's more impressive is lateral resistance going back to April was taken out. There's some resistance at $36 and beyond that there's another gap and resistance at $42. Those are the targets, though keep tight stops as the stock is extended. The stock is down 12% Friday.
Novavax (NVAX) - Get Report had a very nice up-channel last year that topped earlier this year. The company is in the midst of trials on people age 60 and over for its respiratory syncytial virus vaccine. After a steep drop the stock has been basing since May in a trading range between $4 and $4.90, before breaking out on Thursday. The stock gained 47 cents, or 10%, to 5.16 on 9.3 million shares, the strongest volume on an up day since March. Perhaps this is a clean enough breakout that it's going to test immediately $5.75, with the secondary target at the double-top at $6.50. The stock is down 4% Friday.
See Harry's video chart analysis on these stocks.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates CHIMERIX INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHIMERIX INC (CMRX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
You can view the full analysis from the report here: CMRX Ratings Report