Candidates For Follow Through
Biotechnology stocks are
moving higher in the first half of today’s trading session. Shares of Amgen
(
AMGN |
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PowerRating)
are moving up ahead of the company’s fourth quarter earnings report.
A look at a chart reveals that the stock has
been trading in a 30 point range for roughly two years. The current action is
pushing the stock out of the vicinity of the lows of that range.
The Amex Biotechnology Index
(
$BTK |
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PowerRating) is up 1.0%, and
the Nasdaq Biotechnology Index
(
$NBI |
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PowerRating) has risen 0.8%. The
BTK is bouncing higher off the its 50% retracement level from its Sept. low to
Dec. high. Traders may be looking for follow through off this bounce, and this
may provide a positive bias for some biotech stocks.
Shares of Amgen rose $1.03 to $57.09 in early
trade. Amgen is one of the largest drugmakers and is set to report its earnings
after the close of trading today. Amgen is expected to earn 31 cents per share
according to the average estimate of analysts. Amgen is currently trading right
above its 10-period EMA on a five-minute chart.
Before today’s opening, Pfizer
(
PFE |
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PowerRating),
the world’s largest pharmaceuticals group, reported
fourth quarter earnings in line with the consensus estimate of 34 cents a share
and reaffirmed its forecast
of double-digit earnings growth over the next two years. This sent PFE to a
strong open, gapping up to 43.55. On a Pfizer
daily chart, watch for the 10-day EMA to cross above the 30-day EMA. Yesterday,
Johnson & Johnson
(
JNJ |
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PowerRating) and Merck
(
MRK |
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stronger earnings.
The Goldman Sachs Hardware Index
(
$GHA |
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PowerRating)
has risen 2.4% while the Philadelphia Semiconductor Index
(
$SOX |
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PowerRating) is
moving higher by 3.0%. Shares of Novellus
(
NVLS |
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PowerRating) are higher today.
Novellus warned of wider losses in the current quarter, but also indicated first
quarter bookings were up 18% from the previous quarter. Shares of Novellus are
trading higher in the first half of trading and the stock is forming a cup and
handle on the five-minute chart. After suffering from its first annual
loss, Motorola
(
MOT |
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PowerRating) has broken below its support line (13.94).
Hain Celestial
(
HAIN |
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PowerRating) is coming out
of a pullback from lows. HAIN has a TradingMarkets.com
3-month RS ranking of 40.
Dow Chemical
(
DOW |
Quote |
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PowerRating) appears to be
coming out of a pullback from lows. DOW has a TradingMarkets.com
3-month RS ranking of 2.
Computer Network Technology
(
CMNT |
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Chart |
News |
PowerRating) is
tracing out a pullback from high pattern. CMNT is holding a 3-month
relative strength ranking of 95 with an uptrending ADX of 32 from
TradingMarkets.com.
Emmis Communications
(
EMMS |
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Chart |
News |
PowerRating) is
trading in a cup and handle. EMMS has a TradingMarkets.com
3-month RS ranking of 89.Â
K-Swiss
(
KSWS |
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Chart |
News |
PowerRating) is breaking out of a
cup and handle and is trading higher today on stronger volume. K-Swiss has a TradingMarkets.com
3-month RS ranking of 92.
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