Biotech Stocks Continue To Soar, More Gains To Come
Biotech stocks continue to soar, and Biogen and Gilead had big days on Friday. Biogen jumped by nearly 4 percent, taking shares up $368, after reporting robust result on Thursday. Gilead shares jumped by over 5 percent, to over $85, after getting an upgrade from Jefferies and a price target increase to $95.
We have been talking about these two stocks for some time, and the breakout shouldn’t surprise anyone. It seems like the other day when we were focused on Biogen breaking over $318, and Gilead potentially rising to $82.
There appears to be very little standing in the way from Biogen rising to about $400 from its current level.
Gilead also has very little standing between its current price and a rise to $92 as well, but that, of course, doesn’t mean it happens in a straight line.
Regeneron shares have moved out of its downtrend for the first time since June of 2017. That could help the stock rise to about $420. We can see in the chart the stock test the downtrend and it bounced. With the strength of the sector, the setup looks good.
Alexion shares also look close to a big breakout, and could see a rise to about $145.
Acadia has cleared two big hurdles, first breaking above a multi-month downtrend, and then resistance above $31. Next up a multi-year downtrend around $34, which could send shares to about $40.
Vertex has also seen its shares rise substantially.
With many of the big biotech stocks coming back and primed for more gains, the sector is likely not finished rising.
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Michael Kramer and the clients of Mott Capital own shares of ACAD
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