Two Stocks Holding Their Trendline

$GNBT - I have a small position here.  I keep playing the trendline and selling on pops.  If you look at the daily chart, you’ll notice a series of huge pops followed by a consolidation period along a very well defined trendline.  Over the last week, GNBT has attempted to pop off that trendline and I still think we’ll see the move.  It may tray to pull back to MA20 first, but that is a great springboard price-point (good entry).  Long story, short – I’m holding and looking for the move.  Any breakdown to or below trendline support with volume, and I’m out.

GNBT Daily - click to enlarge

$HEB is another good example of a stock that has done a great job sticking to trendline support and then popping. I might be interested in a long position with tight stop just under MA50.  View Chart.

Tags: GNBT, HEB

Chart of the Day

XOMA

My friend, Kunal, mentioned this stock on Twitter yesterday and I’m glad he did.  A quick look at the chart and I was sold – this puppy was ready to breakout.

Check out the chart below (daily through 7/28).

There were a few really good reasons to be prepared for a breakout this morning:

1. Tightening bollinger bands. The tighter the bands, the bigger the pop – that’s the general rule.
2. RSI(14) crossing 50.  Yesterday, RSI was moving north and finished at 50.  Moves through 50 are often associated with a move.
3. Volume.  It is kind of hard to see on this chart (click for larger), but you can see that volume was starting to improve leading into today’s parabolic explosion.
4. ADX made a bullish cross on Friday and looked to continue on Monday – very bullish.
5. Last, but not least, price moved through MA200 yesterday with all of the other bullish indicators.

Bottom line – $XOMA was a no-brainer this morning for a swing/scalp trade.

XOMA Daily - Click to enlarge

Tags: XOMA

Swine Flu Stocks on the Radar

Here are a few stocks I plan on trading through all of the Swine Flu news and noise. There should be some great scalps and swings in the near future.

Three pharmaceutical ETFs to keep in focus as this story develops are:

• iShares Dow Jones Pharmaceuticals Index (IHE): Holds many of the big name U.S. pharmaceutical companies. Pfizer, Merck, Wyeth, and Eli Lilly each account for more than 4% of the fund’s holdings. IHE was up 1.7% in Thursday morning trading on news of the pandemic alert.
• iShares S&P Global Healthcare Sector Index Fund (IXJ): Provides more global exposure to the health care industry, holding international pharmaceutical companies such as Novartis, GlaxoSmithKline, and Sanofi-Aventis in addition to major U.S. firms. IXJ jumped 1.4% in Thursday morning trading.
• HOLDRS Merrill Lynch Pharmaceutical ETF (PPH): One of the largest and most actively-traded pharmaceutical ETFs, PPH provides diversified exposure to U.S. pharmaceutical companies. PPH was up 1.8% in Thursday morning trading.

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Tags: APT, AVII, BRCX, GILD, GNBT, NNVC, NVAX, QDEL, RHHBY, SVA

Healthy Choices?

A look at a few health sector stocks.

TEVA – chart looks good.  Bollinger bands are narrowing and EMA4 is looking to cross EMA13.  I might be interested if a move up tomorrow opens bollinger bands.

PFE – I mentioned yesterday that PFE may have hit a triple bottom and was a possible long candidate.

CI – testing horizontal resistance

Tags: CI, PFE, TEVA

STEM and GERN – Obama Support

There is more and more buzz around Obama opening up stem cell research and these two companies  are likely to benefit.

STEM – up huge today and in the middle of a large bull run. Also watching GERN – lots of volume here.

Tags: GERN, STEM