Shares in the social media giant Facebook (FB) increased 4.6% at the close of trading on Tuesday. This increase was on the back of the announcement a PayPal head will join the company to head it’s messaging products division.
The share price below shows the recent price action with a strong breakout from recent congestion. The breakout occurred on relative strong volume which adds to the bulls conviction to rise the share price.
Traders can look at entering a long position with a target price close to the March high of $72.00. Stops can be placed under the most recent congestion low of $62.00.
Sirtex Medical Limited (SRX) is a biotechnology and medical device group whose primary objective is to manufacture and to distribute effective liver cancer treatments utilising small particle technology to approved markets in Asia Pacific, Americas, Europe, Middle East and Africa (EMEA). Sirtex’s key product is SIR-Spheres microspheres, a treatment for liver cancer.
From a technical perspective the share price broke out to an all time high of $16.80 on Monday after a positive market presentation delivered by company CEO Mr Gilman Wong in Sydney on May 8th.
The chart below shows the formation of an ascending triangle with a horizontal resistance level at $16.40. The share price was able to breakout and close above this resistance level on Monday May 12th on good volume. This breakout is likely to lead to further price increases in the medium term. The share price was supported by the 50 day moving average so any share price weakness may find support at this dynamic support level.
Today’s blog provides an analysis and trading opportunities for three biotech companies that trade on the NASDAQ exchange. The NASDAQ stock market is the second-largest stock exchange in the world by market capitalization, after the New York Stock Exchange.
Biogen Idec, Inc. is a global biotechnology company focused on discovering, developing, manufacturing and marketing therapies for the treatment of multiple sclerosis (MS) and other autoimmune disorders, neurodegenerative diseases and hemophilia.
The share price has been in a steady up trend with the recent formation of a bullish flag. There was a bullish breakout from the upper trend line of the flag yesterday. This is my trigger signal to go long. I will place my stops below the most recent pivot lows (indicated by the red line).
Endo Pharmaceuticals (ENDP)
Endo Health Solutions, Inc. is a U. S. based diversified healthcare company, which redefines healthcare value by finding solutions for the unmet needs of patients along care pathways for pain management, pelvic health, urology, endocrinology and oncology.
The chart shows a strong up trend for the past several months with recent side ways consolidation bounded by a resistance and support level. Yesterday saw a bullish breakout from the resistance level of $67.90 which is a clear signal trigger to enter a long position. Stops can be placed just below the support level of $63.20.
Mylan, Inc. is a generic and specialty pharmaceuticals company, through its subsidiaries, which develops, manufactures, markets and distributes pharmaceuticals.
Again like the previous two charts this share is in an up trend with recent consolidation in prices which formed a symmetrical triangle. The bullish breakout which occurred yesterday gives traders the opportunity to enter this trade on the long side with the expectation that the up trend will continue. Stops can be placed under the most recent low of $42.00.
The Australian sharemarket managed to close higher on Friday and end the week in positive territory. The All Ords Index closed at 4826 for the week.
World markets were watching the US non farm payroll figures on Friday morning (US time) which came in above estimates. For the month of June 195,000 jobs were created in the United States which was above the economic estimates. Un-employment in the US remains steady at 7.6%.
I anticipate that the Australian market will respond positively to these results and rise in early trading on Monday.
The daily chart for the All Ords Index below shows the index attempting to test the current overhead resistance level of 4850/4900. The 20 and 50 day moving averages are moving downwards so I still have reservations on the strength of the current up move and I expect it to run out of steam and start to retrace lower at some point, or at least be held up at this level.
For traders looking for opportunities on the Australian sharemarket I have provided stock chart setups for the following shares which provide opportunities to buy.