Where Will Intrexon Shares Go Next?
Although it has edged slightly higher, the S&P 500 has essentially stalled over the last couple of months. The Nasdaq has been hitting a ceiling at 5100 over that same period of time.
However, some industries (transports) have broken much lower, while other industries (biotechnology) have plowed higher.
With biotech, many stocks have even hit new highs. Alnylam Pharmaceuticals (NASDAQ: ALNY), Anacor Pharmaceuticals (NASDAQ: ANAC), Bluebird Bio (NASDAQ: BLUE) and Halozyme Therapeutics (NASDAQ: HALO) are just a few of the biotech names that have hit recent highs.
Are there other biotech stocks that are preparing for a break to new highs?
Intrexon is a stock that appears to be winding up for a break, one direction or the other.
The company: Intrexon Corporation
Ticker Symbol: (NASDAQ: XON)
Intrexon operates in the synthetic biology field in the United States. The company, through proprietary and complementary technologies, designs, builds, and regulates gene programs, which are DNA sequences that consist of key genetic components.
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Its technologies include UltraVector gene design and fabrication platform, and its associated library of modular DNA components; cell systems informatics; RheoSwitch inducible gene switch and AttSite Recombinases.
Review the one-year chart of Intrexon with the added notations:
Intrexon declined all throughout last summer up to its October low around $17 per share.
From that point, the stock started a rally that took Intrexon to a high mark above $50 in March. Since then the stock has been slowly drifting lower.
Both the stock’s rally and its decline have formed key trendlines to watch. The three-month trendline resistance has been tested on four separate occasions, while the trendline support has been tested numerous times over the course of the last eight months.
At some point Intrexon will break one of those trendlines, and that break will most likely dictate the stock’s next bigger move.
The stock closed Tuesday at $42.31.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.
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