NEW YORK (TheStreet) -- Strong charts continue to be found in this uncertain market, especially in the biotechs. Here are three to watch for more upside.
Arrowhead Research (ARWR) is in a bottoming pattern. It pulled back to test support in late July, and has since stair-stepped its way up. It reached initial lateral resistance recently, backed off, and then broke through it, consolidating this past week. On Wednesday, it was up 77 cents, or 4.77%, to $16.90 on nearly three million shares. If it can get through the $17.45 area, and looks like it could take a run to $18.50-$18.75, and then the low $20s. At around $16, shares are up over 50% for the year to date.
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BioDelivery Sciences International (BDSI) is also acting great. After a one-day pullback, the stock has started to consolidate. On Wednesday, it gained 41 cents, or 2.39%, to $17.55 on 1.2 million shares. That's not very big volume for this stock, so it may continue to consolidate for another few days. Watch to see it flag in here before its next move to the high teens, maybe $20. Shares, at around $17.60 currently, are up 198% year to date.
Chimerix (CMRX) is another biotech that is happening. It has multiple tops a couple years apart, which it blew through on Wednesday, up $1.49, or 17.6%,to 30.03 on nearly a million shares. That's the biggest volume on an up-day in a year, or longer. It looks like it's headed up toward the mid $30s. Currently around $29.40, shares are up nearly 95% for the year todate.
At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates ARROWHEAD RESEARCH CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARROWHEAD RESEARCH CORP (ARWR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow." You can view the full analysis from the report here: ARWR Ratings Report