Here's The Latest Biotech Breakout
Until the markets pullback a bit, investors and traders will ride this gravy train as long as it goes. Thanks to the market run-up a lot of stocks already seem somewhat extended. However, there are some stocks that are a little late to the party and are just now breaking higher.
For example, Celldex Therapeutics, Inc. (NASDAQ: CLDX) just recently broke out above its $18 resistance. In that period of time that stock has already hit a high of more than $21.
Another biotech name that just broke out this week, and whose chart looks very similar to Celldex, would be XOMA.
The company: XOMA Corp
Ticker Symbol: (NASDAQ: XOMA)
Sector: Health care
XOMA discovers and develops antibody-based therapeutics in the United States, Europe and the Asia Pacific.
Related Link: This Biotech Stock Is Ready To Run
The company’s proprietary products include XOMA metabolic activating, sensitizing, and antagonizing/deactivating antibodies that are in preclinical stage for the treatment of diabetes patients, a multi-antibody product for the treatment of human botulism poisoning and a topical anti-bacterial product for the treatment of human immune system.
Review the one-year chart of XOMA with the added notations:
After losing more than 60 percent of its value, XOMA finally found a bottom in May near $3.50 per share.
Since that bottom, the stock has been trading in a well-defined range between a low of around $3.60 and a topside resistance at $5. This sideways range appears to have been a basing process for XOMA.
Earlier this week XOMA broke through its $5 resistance and did so with a large increase in volume. High volume may add validity to a breakout.
When stocks form XOMA’s type of pattern and breakout, higher prices overall could be expected.
The stock closed Tuesday at $5.52.
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