Biotech Brewery
With Monday’s “Chart of the Day,” Myriad Genetics
coming in with a gain of nearly 12 points into Tuesday’s close, I thought I’d
scan for more potential action in this group.
Here’s a setup in Human Genome Sciences
(
HGSI |
Quote |
Chart |
News |
PowerRating) that I find interesting,
although it is probably still in the incubation stage.
HGSI popped up at the open but encountered a wall of selling
mid-session near Monday’s highs. This brought the stock back toward the lows of
its intraday range by the close.
The attraction, however, is that support is not distant. Tuesday’s
action is just above HGSI’s 50-day moving average, a solid three-month
trendline, and its 50% retracement (off the late-July lows and the mid-October
highs).
A big volume day on a price surge Friday is another plus.
So from here, we could see another test of this support level
followed by a healthy bounce. HGSI doesn’t care what I think. But the
opportunity will present itself if we see that pullback and support holds.
Until Wednesday,