5 Stocks Poised for Big Breakouts
By Roberto Pedone Follow | 03/04/16 - 07:14 AM EST
A clinical-stage oncology player that's starting to spike within range of triggering a big breakout trade is ProNAi Therapeutics (DNAI) , which develops and commercializes a class of therapeutics based on its DNA interference technology platform for patients with cancer and hematological diseases. This stock has been annihilated by the bears over the last six months, with shares dropping sharply lower by 79.5%.
If you take a glance at the chart for ProNAi Therapeutics, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $5.85 to $5.70 a share. Following that potential bottom, shares of ProNAi Therapeutics have now started to spike sharply higher, and it's quickly trending within range of triggering a big breakout trade above some near-term overhead resistance levels.
Traders should now look for long-biased trade in ProNAi Therapeutics if it manages to break out above its 20-day moving average of $6.57 a share and then above more key resistance levels at $6.62 to around $7 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 143,485 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $7.46 to $8.60, or even $9 to its 50-day moving average of $9.53 a share.
Traders can look to buy ProNAi Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $5.70 a share. One could also buy this stock off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point. (end of article)
I have been loading this stock for the last two. Avg cost is 6.59 now.
DNAI is starting to bounce . Long for a swingtrade.
It could have a nice move into the phase II results Pasted from the last quarterly earnings report. "We recently announced the initiation of Brighton, a Phase 2 monotherapy trial evaluating our lead DNAi-based product candidate PNT2258 in approximately 50 patients with Richter's transformation, a rare form of lymphoma with no approved treatments. We also continue to enroll patients in Wolverine, our Phase 2 monotherapy trial of PNT2258 in patients with relapsed or refractory diffuse large B-cell lymphoma, DLBCL, and we remain on track to report initial data from this trial in the second quarter of 2016," said Dr. Nick Glover, President and CEO of ProNAi Therapeutics. "With these trials underway, we are now preparing planned Phase 2 trials of PNT2258 in combinations with other therapeutics in patients with earlier lines of DLBCL and anticipate initiating the first of these trials in the first half of 2016."
Muliple Institutional ownership updates that were reported on 02/16/16 can be found on the nasdaq website .
DNAI has been tanking on no significant news that I have been able to find. The stock is oversold by most technical measures and it is a value stock at these levels. Average analysts target is 35.50 according to yahoo . Average cost is 7.15 and looking to add for rally in the stock. Best of luck to all traders and investors.