NEW YORK (TheStreet) -- Good day traders!
1. First, let's look at Cerus, a biomedical products company operating in Europe, the Commonwealth of Independent States and the Middle East.
Cerus traded up 1.48% on Friday, closing at $4.11.
- Friday's range: $3.99 - $4.12
- 52-week range: $3.48 - $8.00
- Friday's volume: 606,328
- 3-month average volume: 634,142
Cerus looks good technically, as shares are steadily trading higher since reaching the 52-week low back in July. The stock is currently trading 18% higher than that low.
There are many things I like about this chart. There is a nice short-term uptrend from the bottom. The price action has cleared some near-term resistance levels, which opens the upside potential. And volume increases with bullish moves.
The chart also formed a bullish flag signal, a mini one, but it looks like a continuation pattern to me. Friday's candlestick is a mini bullish engulfing signal, which implies shares will trade higher. The next resistance level is at $4.34, which is 5.73% from Friday's close. Some traders may want to wait for shares to trade over this resistance level, while others may want to get in on Monday's open and trade through the resistance level.
I would look for an entry around $3.99 to $4.08. I'd set my loss stop at $3.87, which was last Tuesday's opening price. I would target the 200-day simple moving average at $5.04, which is 22% from Friday's close.
Stay long until you see a confirmed sell signal or a close below the t-line.
2. Next, let's look at Endocyte, a biopharmaceutical company which develops targeted therapies for the treatment of cancer and inflammatory diseases in the U.S.
Endocyte traded up .35% on Friday, closing at $8.58.
- Friday's range: $8.40 - $8.88
- 52-week range: $5.91 - $33.70
- Friday's volume: 1,861,721
- 3-month average volume: 1,303,120
Endocyte's chart looks good technically -- it's trading off a bottom. Shares had been trading sideways between $6 and $7 for months. Last Monday, the chart formed a bullish engulfing signal, then confirmed by gapping up on Tuesday and closed up 17% from Monday's close. Wednesday's close was up 38% from Monday's open. Then, on Thursday and Friday, there was profit taking and shares traded within Wednesday's candlestick. This looks like a bull flag pattern, and will either trade sideways a few more days or break to the upside.
I'd look for an entry above the t-line, which is at $7.95. I'd set my stop at around $7.50, as I wouldn't want shares to close below this level. I'd target the 200-day simple moving average at $10.98, which is 28% to the upside. I'd start with a quarter position and add to the position on strength to the upside, then I'd close out half of the position at the 200-day simple moving average. Stay long until you see a confirmed sell signal or a close below the t-line.
3. Lastly, let's look at Galectin, a development-stage company engaged in the research and development of therapies for fibrotic disease and cancer.
Galectin traded up 10.14% on Friday, closing at $6.19.
- Friday's range: $5.59 - $6.60
- 52-week range: $4.28 - $19.11
- Friday's volume: 1,276,121
- 3-month average volume: 751,119
Galectin was hit hard on July 29, when the share price gapped down over 50% in premarket trading. Shares continued lower for the next couple of weeks before finding a bottom, and the stock is now trading to the upside. Trading Galectin is an attempt at getting in at the bottom for maximum gain potential, so this trade will need active trade management.
I'd look to enter this trade on an inside day, say in the range of $5.78 to $6.19. I'd set a stop just below Friday's open, at about $5.55. I would first target the 50-day simple moving average, which is at $8.12, then target the 200-day simple moving average at $11.44, which is 31% and 84% to the upside respectively. Stay long until you see a confirmed sell signal or a close below the t-line.
Good luck traders!
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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.