The stock market really had a topsy-turvy day on Monday, gapping sharply lower, and then snapping back nearly all of the losses, only to rollover and go right back down to the lows again, but it was a good close. We are going to take a look at some longs here. Fourteen out of sixteen of these stocks are biotechs. The biotech group has been a resilient group.
Dynavax Technologies Corporation (DVAX) has an interesting pattern. After 5 waves down, and then a 3-wave corrective pullback, it moved into a coil, broke out, retested, formed an inverse head-and-shoulders, then a wedge pattern, and on Monday it broke out, up 1.94 to 25.51, or 8.23%, on 1.6 million shares. The only thing left to test at this level is the spike high at the 26-9 range, which coincides with the 26.80 range. If it gets through this level, look for 35 to be the next target.
NewLink Genetics Corporation (NLNK) had a nice reversal day on Monday, up 2.51 to 45.73, or 5.8%, on nearly 600,000 shares traded. It had a nice pop through the moving averages, but it did not get through the declining topsline. The challenge will be to take out 47 3/4 that takes out the zone to let it run. The next target is to fill the gap at 50-53, and then the secondary target is 57-58.
Radius Health, Inc. (RDUS) has an outstanding chart, incredibly outstanding. On Monday, it was up 2.26 to 70.19, or 3.33%, on 797,265 shares traded. This stock has a shot at a run to 85, and then 98.
Sorrento Therapeutics, Inc. (SRNE), which we picked when it was at the 5.00 range, and now it’s nearly 17 1/2, up 61 cents to 17.29, or 3.66%, on 575,610 shares traded on Monday. It ran up, pulled back, formed 3 large waves up, with the third one underway. The third wave could get it all the way up to 25. The little consolidation-flag pattern has some support around 16-16 1/4 pattern. The targets are 18.28, then 20-20 1/2, and eventually 25.
Other stocks on Harry’s Charts of the Day included Agenus Inc. (AGEN), Celldex Therapeutics, Inc. (CLDX), Eagle Pharmaceuticals Inc. (EGRX), Intra-Cellular Therapies, Inc. (ITCI), MOBILEYE N.V. (MBLY), Novavax, Inc. (NVAX), InVivo Therapeutics Holdings Corp. (NVIV), Opko Health, Inc. (OPK), ProShares UltraShort DJ-UBS Crude Oil (SCO), Synergy Pharmaceuticals, Inc. (SGYP), and TG Therapeutics, Inc. (TGTX).