There’s been an interesting development for Legend Biotech this week – on Tuesday, after the close, results for the company’s myeloma joint-venture drug with Johnson & Johnson (NYSE:JNJ), Carvykti, were leaked online. The data was positive. RBC Capital Markets analyst Leonid Timashev wrote that Carvykti shows "unequivocally meaningful benefits over the standard of care, which we believe may work to ultimately position the drug not just as the preferred CAR-T, but as the preferred treatment option among physicians treating multiple myeloma patients.” 

The addressable market for this particular treatment may be as large as $9.6 billion, and this sent LEGN shares soaring on Wednesday, with the stock closing up nearly 20% to $62.50 on volume of around 9 million shares vs. an average volume of 600,000. On the surface, this would appear to be a strong catalyst that may continue to propel the stock in the coming days. The tailwinds in the sector as a whole may also drive increased bullish sentiment. Over the last five days, LEGN is up around 21%. Over the last month, the stock has risen more than 35%. These are new all-time highs in the name and LEGN should be registering on traders’ radar. 

This stock has started moving in a big way over the last week, registering a gain of 21% and closing above $293.00. Volume was lighter than average, however, on Wednesday and a confirmation of continued momentum in the name would be more persistent price gains on increasing volume. There is a very obvious technical level in MDGL that should determine the near-term fate of this stock with regard to performance. On December 19, 2022, Madrigal shared positive drug data that sent shares soaring more than 250%. Since that time, the stock has been range-bound and has been turned back at the $300 level repeatedly. A move above this technical level on heavy volume could lead to a continued significant rally in the name. This is a very compelling setup, and traders should add MDGL to their bull watchlist at the very least. 

Vaxcyte, Inc. is a San Carlos, California-based biotechnology firm that has attracted the attention of Wall Street in recent months after a big pop in the stock last fall on positive data for the company’s pneumococcal vaccine. Shares traded around $45.00 into the early winter before pulling back in the Spring. In just the last week, however, PCVX has started moving again in a big way. The stock has climbed more than 31% over the last 5 trading sessions and has re-taken the $45.00 level once again, closing Wednesday’s session at $45.79. Volume was much heavier than normal with around 6 million shares trading hands versus a daily average of under 800,000. Back in December and January, bull moves in the stock lost momentum in the $46.00-$48.00 area. A further breakout would be confirmed if PCVX can get above this prior resistance level and continue to run on heavy volume.  

Revolution Medicines has been riding the recent wave in the biotech sector and the technical setup in the name suggests the next couple of days could see a continuation of momentum. Shares have jumped almost 21% over the last five trading sessions, including a 3.75% gain on Wednesday which propelled RVMD to a close above its most recent trading range. Nevertheless, this is a volatile stock and we most likely won’t see confirmation of a lasting breakout in the name until we see a sustained move above $30.00. Nevertheless, the near-term resistance in RVMD is at $25.00 and shares closed above that at $25.18 on Wednesday. If RVMD can sustain above $25.00 in the coming days and is attracting above-average volume, a move back towards that $30.00 previous resistance level would appear likely. 

This Encinitas, California biotech firm has made a huge move over the course of the last five trading days but is still down around 3% for the month. The stock took a rest on Wednesday, closing the session flat, but is up more than 26% over the last week. Volume was slightly heavier than normal, but there does not appear to be a compelling technical setup that goes beyond the very near-term bullish momentum. Nevertheless, the Street has a consensus price target of $57.25 for VTYX – compared to the current price of $36.63 – and the stock has already climbed 24% in 2023, although it has been a choppy ride with shares well-off previous highs above $45.00 seen in March.