The overall look of the indices has me concerned, so we’re going to be extremely cautious going forward. However, the biotech sector has been doing well, so we are going to highlight some of those here.
Advaxis, Inc. (ADXS) had a terrific day on Wednesday, opening at 10.15, getting up to 10.90, and closing at 10.59, up 47 cents, or 4.6%, on 1.1 million shares. The volume was the best in a couple weeks. As this stock recently came out of a falling wedge, it stair-stepped its way up with a series of pops and flags, and now it’s been up two days in a row. Watch for a test, maybe as early as Thursday, of the 11-11.10 zone. If it gets up there and through that, then the new targets are 13 3/4, and ultimately to 19.
Celldex Therapeutics, Inc. (CLDX) had a beautiful day on Wednesday, up 2.93 to 29.30, or 11%, on 5 million shares. After the recent breakout, it pulled back, topped, pulled back one more time, formed another wedge, and broke away with a breakaway gap. It had a couple important technical days leading to the top of the channel. If it gets some upside momentum, look for 33-34, but at any moment this stock could get into a consolidation mode since it’s at resistance. Longer term, the February highs at 33.33 would be a target zone.
NewLink Genetics Corporation (NLNK), a swing trade pick of ours, is doing great, up 3.39 to 49.53, or 3.4%, on 700,000 shares traded Wednesday. It popped, pulled back, and consolidated nicely, and it hit the top of the trendline. With momentum it could get to 52-53, the short-term target. Beyond that, look for it to get to 60-62.
Sorrento Therapeutics, Inc. (SRNE) has been acting great ever since we began highlighting it, with the exception of one day. But look how it recovered. It formed a coil, broke out, and has been moving steadily. It looks like it’s being accumulated, especially when you look at the On-Balance Volume moving up steadily. It’s not getting too far ahead of itself, a nice orderly advance. On Wednesday, it jumped across a triple top to close up 34 cents, or 2.6%, on 267,600 shares. The volume wasn’t big, and it didn’t close great, but it hit a new high on Wednesday at 13.84. The targets are near 17, and then eventually 23-24.
Other stocks on Harry’s Charts of the Day included Ambarella, Inc. (AMBA), Bristol-Myers Squibb Company (BMY), Capnia, Inc. (CAPN), NewLink Genetics Corporation (NLNK), Ocular Therapeutix, Inc. (OCUL), Ohr Pharmaceutical, Inc. (OHRP), Orexigen Therapeutics, Inc. (OREX), Pernix Therapeutics Holdings, Inc. (PTX), Sanchez Energy Corporation (SN), Sorrento Therapeutics, Inc. (SRNE), and Unilife Corporation (UNIS).