Arrowhead Research Corp Heads Higher After Breakout
After a nice three-week rally, the stock market has stalled for about the last week. The S&P 500 has been stuck within 10 points of 2,000, a psychologically important level.
Most of the biotech industry has been doing the same. The iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) hit a new all-time high earlier this week, yet still sits near the same $275 mark it's been at for the last week.
There have been a few biotech stocks, however, that made significant moves this week.
The company: Arrowhead Research Corp
Ticker Symbol: (NASDAQ: ARWR)
Sector: Health care
Arrowhead Research develops targeted RNAi therapeutics in the United States.
The company’s platform technologies include Dynamic Polyconjugate platform, a RNA delivery system that addresses multiple organ systems and cell types, promotes multi-log gene knockdown, and induces endosomal escape.
Take a look at the one-year chart of Arrowhead, with added notations:
Arrowhead hit a rough patch back in March and April, finally bottoming around $9 toward the beginning on May.
Arrowhead has since formed a good representation of a double bottom price pattern, with the second bottom occurring in August.
Arrowhead on Wednesday broke through the $15.50-16.00 resistance zone that had been created by the double bottom pattern, thus confirming the pattern.
The stock closed at $16.27.
Always remember to use protective stops to be around for the next trade. Capital preservation is always key.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.