There is a good amount of resistance from the $4.70 to the $4.75 level.
That's what made me take some intraday profits, as I will continue to try to bring down my average cost even further.:)
But the week is still young and although volume has definitely increased, it is still below the volumes around mid-January, which we should see in order to continue this week's momentum and RING the BELL.
The DOW has been hovering and flickering all day with a 200 points gain, and if the general market can keep its current pace, may be OPK won't need to come out with any news, as the shorts are getting scared, and there are plenty that have borrowed OPK shares. :)
With the DOW giving up about 1/4 of its yesterday's gain, and OPK about 1.07%, it is time to replace any shares sold yesterday. :)
OPKO is mentioned in an article on SA among three Biotech stocks considered for investing, taking into account drugs in PIII that have good potential for success based on the research and also a large financial potential if approved by the FDA.
In OPKO's case, the author's pick, or selection, is based on Rolapitant, which has started its PII for nausea and vomiting in patients receiving chemotherapy, and it points out that the sales of cancer drugs doubled from 2005-2010 and are projected to continue growing at an 8% rate annually. So it seems there will be a rather large market potential for drugs that help to counteract the nausea an vomiting induced by such drugs. The article doesn't mention that although PIIIs are expensive, OPKO won't have to pay for it, since the cost will be paid by Tesaro.
As I mentioned this morning,it was time to replace the stock sold in profit taking at yesterday Hs. And that was confirmed with a good one minute up-move on a volume of 75Ks at 1:11pm :)
The stock is now going through the previously mentioned resistance starting at the $4.70 level and the chart pattern has turned positive on the one minute and five minutes charts. But there is still more improvement needed, since it is not too easy to overcome resistance levels without some catalyst, like an expected, conference, development or actual positive news. I would be satisfied if the stock can close above the $4.85 or near $4.90 level this week, but will keep the BELL ready to RING.
The daily chart shows some improvements, like the RSI rising and now above the 40 level, the price above the EMA5 and EMA10 which are both at 4.62, the MACD, On Balance Volume and Full Stochastics pointing up and the Parabolic SAR back down at the 4.22 level. But there are some other improvements needed in order to change the chart pattern on the daily chart into an UT, since the EMA20 at 4.68 although below Price, is still above the shorter EMAs and the EMA50 at 4.81 is also above.
I will wait for those to improve before adding further to my position.