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.
Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets
Free Articles Written By Mike:
We offer daily market commentaries sent directly to your inbox or follow us on Twitter.
Join our 2,400 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]
Michael Kramer and the clients of Mott Capital own shares of ACAD
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
© 2017 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #biotech #stocks #biogen #gilead #acadia #regeneron #vertex #alexion