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Biotech stocks continue to dominate charts I am watching.
Achaogen, Inc. (AKAO), which exploded in December on positive late-stage data on its lead antibiotic, has been working its way higher since. The stock flagged in the second half of December, broke out, and then flagged again in late January before its latest upmove. On Tuesday it popped $1.39, or 8%, to $18.85 on big volume of 1.9 million shares. Watch for a move to $21 next.
Esperion Therapeutics, Inc. (ESPR) is absolutely rocketing. The clinical-stage biopharma, which is focused on developing drugs that treat cardiovascular disease, popped 29% on Friday in response to good clinical news from Amgen regarding its own cardiovascular drug. The stock followed through on Monday and then again yesterday, up $2.48, or 14%, to $20.14 on nearly 3.4 million shares. The stock pulled back toward the close, testing the bottom of its rising channel and resting in a tight wedge formation. This formation looks poised to break to the upside, with the next target at the channel top near $22.
Exelixis, Inc. (EXEL) also had a strong session on Tuesday, up another 54 cents, or 2.7%, to $20.57, on nearly 6.7 million shares traded. The cancer drugmaker's stock needs to get through the rising trendline, near $21, connecting the most recent tops from September, December and January. The challenge beyond that would be the mid-channel line at around $22.75, a break through which could accelerate the stock into the high $20's.
KEMET Corporation (KEM) has been in a steady rising channel since its breakout in November. The stock last week bounced off the channel bottom and rallied after the electronic capacitor maker beat Wall Street's 3Q earnings and revenue forecasts. It popped on Thursday and Friday, had an inside day on Monday (remaining inside the price range from Friday), and on Tuesday it had another solid day, up 17 cents, or 2.2%, to 7.81, on 652,900 shares traded. The stock looks like it’s about to take out the $7.90 area, and run up towards the channel top in the $9-$9.75 area.
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