5-Star Biotech Stock Watch: Anacor Pharmaceuticals
Sometimes an “up” day isn’t just any “up” day.
Not only did the stock market push higher yesterday, the S&P made a very specific, positive move in the form of a break through its 3-year channel resistance. This should lead to an increase in prices for the S&P, at least in the short-run.
Well, thanks to the market’s move higher, several stocks also broke though important price levels. Here's a look at one: Anacor Pharmaceuticals (NASDAQ: ANAC).
The stock had been edging higher with the market since the beginning of June. Yesterday it made a move, like the S&P, that should signal higher prices ahead.
The company: Anacor Pharmaceuticals, Inc.
Anacor focuses on discovering, developing, and commercializing novel small-molecule therapeutics derived from its boron chemistry platform.
Related Link: 4 Biotech Stocks With Big Money Coming In
The company’s lead product candidates include AN2728, an anti-inflammatory product candidate, which completed Phase II clinical trials for the treatment of atopic dermatitis and psoriasis, and chronic inflammatory skin diseases.
Take a look at the 1-year chart of Anacor with added notations:
As most market participants know, biotech stocks got hit pretty hard with the Nasdaq and Russell back in April and May.
Anacor was no exception.
As mentioned above, Anacaor has moved higher off of its $13 low and had made it all the way back up to a common resistance it has tested at $18.
Yesterday the stock broke through that resistance level and should be moving higher overall from here. The stock is currently trading at $18.59 (Wednesday 11 am).
Related Link: 5-Star Biotech Stock Watch: Celldex Therapeutics
Anacor isn't set to release earnings again until the beginning of August.
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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