Celldex Therapeutics Breaks Resistance
Since September 19, the S&P 500 has only had six up days. Two of those up days were gains of less than three points.
When the market declines in such a fashion, it's hard to find too many stocks that are bucking the downtrend.
At some point, however, the stock market will turn and many stocks will turn with it. Keeping tabs on initial breaks of resistance could be a great way to get a heads up on those turns when they first get started.
One biotech name that seems to have made the turn is Celldex Therapeutics.
The company: Celldex Therapeutics, Inc.
Ticker Symbol: (NASDAQ: CLDX)
Sector: Health care
Celldex focuses on the development, manufacture and commercialization of novel therapeutics for human health care primarily in the United States.
Related Link: The 3 Most Volatile Biotech Stocks
The company has research collaboration and license agreements with Amgen Inc., Amgen Fremont, Seattle Genetics, Inc. and Bristol-Myers Squibb Company.
Take a look at the one-year chart of Celldex with added notations:
Celldex fell off a cliff in March and April to the tune of an almost 70 percent loss in value. The stock had hit a high of almost $33 before bottoming at just under $11.
The stock has since been trading primarily sideways by recovering up to as high as $18, while declining to a low down at $12. The $12 support has been tested on multiple occasions.
Celldex had also formed a trendline of resistance over the last two months. The stock broke through that resistance on Tuesday. This could be a sign of higher prices to come.
At time of publication, the stock traded at $14.97.
Always remember to use protective stops. Capital preservation is always key.
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