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Christian Tharp, CMT

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Product Performance

The Biotech Stock With The Biggest Head Of Steam

Which biotech stock has been picking up the most steam as of late?

First, let’s define “as of late." After all, different time horizons would result in different leaders and laggards. And traders and investors would be looking for different things.

Traders might be looking for stocks that are accelerating only in the short term, while investors might be longer for the ones that are gathering strength over the long haul.

This article will focus on the ones in the middle.

By taking the average daily price growth for the last four weeks and dividing it by the average daily price growth for the last 13 weeks, we will be able to find stocks whose growth is accelerating in the medium term.

After conducting that scan across only the biotechnology industry, one stock in particular was head and shoulders above the rest.

That stock was Alnylam Pharmaceuticals (NASDAQ: ALNY).

  

To look at Alnylam’s stock, one would not think this was a momentum leader. However, when you notice where the stock was three months ago and compare it to other biotechs, it has apparently outperformed its peers.

Back in April and May the stock hit a low near $47.00 and is now trading closer to $55.00. Obviously, that rise seems to pale in comparison to the fall from Alnylam’s $113.00 peak in January.

Regardless, in the medium term the stock’s momentum has been accelerating, but will it continue?

The criteria used to identify Alnylam was by searching for biotechs that traded more than 500K in volume and were greater than $5.00 in price.

Obviously, investors must conduct their own due diligence before investing in any stock.

However, stocks with the highest increase in short interest are worth keeping an eye on.

Tags: biotech

Posted in: Long Ideas Health Care Trading Ideas General