The healthcare arena has been a bit bifurcated this year with the IBB 7% off most recent 52 week highs and has found support at the round par number and is looking for a five week winning streak depending on Fridays CLOSE. I think it has room to 110 which would be the right clavicle in a bearish head and shoulders formation. The XLV is just 1% off its own most recent 52 week highs yet has repeatedly been pushed back at he 84 number. The medical devices ETF IHI is having a nice '17 up 32% YTD, while the XLV and IBB have advanced 21 and 20% respectively. Today we take a look at an immunotherapy name, a very popular treatment, that is public just more than 2 years and has a very promising chart. We will look at it on a shorter and longer term time frame here, and how one can enter and add to on strength.
Just below is an oncology play higher by 101% YTD and 92% over the last one year period, and even with those stellar numbers it currently sits 10% off most recent 52 week highs. The stock has backed off on light volume this week and just yesterday completed a handle on a good looking, taut cup base (handles to be considered legitimate should be at least 5 days in duration). It filled in a gap for those who missed the AMGN news related gap on 10/4 that sent the stock up more than 20% finding comfort at an upward sloping 50 day SMA. Enter CTMX with a buy stop above a cup with handle trigger of 23.10 and the chart further below will discuss the longer term picture and an add on buy point to pyramid up into.
On the weekly time frame the chart looks rock solid too. Volume trends are bullish as it recorded a 6 of 7 week winning streak, the weeks ending between 8/25-10/6 which double digit weekly gains of 18, 10.3 and 18.3% the weeks ending 8/25, 9/1 and 10/6 (for the last 2 1/2 months it has digested that robust move well trading sideways). More recently it held the round 20 number well with four consecutive weekly hammer candles the weeks ending between 10/27-11/17. Use an add on to the short term cup with handle breakout with the longer one more than two years in duration now above a 24.77 trigger. A breakout achieves an all time high.
If you liked what you read why not visit www.chartsmarter.com.
The healthcare arena has been a bit bifurcated this year with the IBB 7% off most recent 52 week highs and has found support at the round par number and is looking for a five week winning streak depending on Fridays CLOSE. I think it has room to 110 which would be the right clavicle in a bearish head and shoulders formation. The XLV is just 1% off its own most recent 52 week highs yet has repeatedly been pushed back at he 84 number. The medical devices ETF IHI is having a nice '17 up 32% YTD, while the XLV and IBB have advanced 21 and 20% respectively. Today we take a look at an immunotherapy name, a very popular treatment, that is public just more than 2 years and has a very promising chart. We will look at it on a shorter and longer term time frame here, and how one can enter and add to on strength.
Just below is an oncology play higher by 101% YTD and 92% over the last one year period, and even with those stellar numbers it currently sits 10% off most recent 52 week highs. The stock has backed off on light volume this week and just yesterday completed a handle on a good looking, taut cup base (handles to be considered legitimate should be at least 5 days in duration). It filled in a gap for those who missed the AMGN news related gap on 10/4 that sent the stock up more than 20% finding comfort at an upward sloping 50 day SMA. Enter CTMX with a buy stop above a cup with handle trigger of 23.10 and the chart further below will discuss the longer term picture and an add on buy point to pyramid up into.
On the weekly time frame the chart looks rock solid too. Volume trends are bullish as it recorded a 6 of 7 week winning streak, the weeks ending between 8/25-10/6 which double digit weekly gains of 18, 10.3 and 18.3% the weeks ending 8/25, 9/1 and 10/6 (for the last 2 1/2 months it has digested that robust move well trading sideways). More recently it held the round 20 number well with four consecutive weekly hammer candles the weeks ending between 10/27-11/17. Use an add on to the short term cup with handle breakout with the longer one more than two years in duration now above a 24.77 trigger. A breakout achieves an all time high.
If you liked what you read why not visit www.chartsmarter.com.