Regado Biosciences

One biopharmaceutical player that insiders are jumping into here is Regado Biosciences (RGDO), which focuses on the discovery and development of antithrombotic drug systems for acute and sub-acute cardiovascular and other indications. Insiders are buying this stock into notable strength, since shares are up 19% so far in 2014.

Regado Biosciences has a market cap of $127 million and an enterprise value of $81 million. This stock trades at a reasonable valuation, with a price-to-book of 2.55. Its estimated growth rate for next year is 1.8%. This is a cash-rich company, since the total cash position on its balance sheet is $43.46 million and its total debt is just $4.41 million.

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A beneficial owner just bought 400,000 shares, or $2 million worth of stock, at $5 per share.

From a technical perspective, RGDO is currently trending above its 50-day moving average of $5.52 a share, which is bullish. This stock has been uptrending over the last two months and change, with shares moving higher from its low of $4.56 to its recent high of $6.80 a share. During that uptrend, shares of RGDO have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RGDO within range of triggering a near-term breakout trade.

If you're bullish on RGDO, then I would look for long-biased trades as long as this stock is trending above some key near-term support levels at $5.30 or at $5 and then once breaks out above some near-term overhead resistance levels at $6.75 to $6.80 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 29,842 shares. If that breakout hits soon, then RGDO will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $8, or even $8.50 a share.

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