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A range of momentum stocks in biotech, technology and the cannabis industry have charts that are showing strength.
Akcea Therapeutics Inc. rose $1.56, or 6.7%, to $24.85 Tuesday on volume of 336,400 shares, slightly below normal but the best in six sessions. The biopharmaceutical company announced it will present at the Jefferies Global Healthcare Conference on June 5. The move broke the stock through the declining top of a two-month down channel, and positioned it right against lateral resistance. A break above Tuesday’s high of $25.33 could take the stock to $29.
Canopy Growth Corp. jumped $1.22 to $28.12 on 2.6 million shares traded Tuesday. The Canadian marijuana company announced entry into the African market with the acquisition of Daddy Cann Lesotho PTY Ltd. The stock has been in a basing pattern since the start of the year that appears to be setting up for a strong up-move. It needs to hold Monday’s low of $26.70 ideally, and break through last Thursday’s high of $31.31, for a move to our next target of $33-$34.
Cree Inc. popped $1.47 to $47.32 on 1.9 million shares Tuesday. The move came on no news from the chip and lighting company. The stock, now at the highest level in four years, is in a steeply rising channel off its August 2017 low of $20.50. Next target is $52.
Endocyte Inc. gained 65 cents to $13.98 on 1.3 million shares traded Tuesday. Like AKCA, the biopharmaceutical company announced it will present at the Jefferies Global Healthcare Conference on June 5. The stock had a huge move in February and March off a low under $3, coiled for six weeks, and has since run up. It is flagging again, and looks to have one more leg up toward the channel top at $17-$18.
Impinj Inc. leaped $2.34, or 14%, to $19.08 Tuesday on 1.4 million shares, 2 1/2 times its average volume. The move came on no news from the radio frequency identification solutions provider. The stock, which broke down in early February, based for three months before breaking out in early May. That breakout was followed by a falling wedge, which the stock popped out of with Tuesday’s move. A move through $20 should get it to next resistance levels at $23 and then $27.
See Harry’s video-chart analysis on these stocks.
The writer has no holdings in any securities mentioned.
Harry Boxer is founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.