Two biotechs top our list of key charts to watch on the long side, while we also feature two shorts to play in this topsy-turvy market.
NantKwest Inc (NASDAQ: NK) had an explosive move through its declining topline and lateral resistance on Monday. It gained 69 cents, or 16.3 percent, to $4.90 on 1.4 million shares, the second highest volume traded in the stock this year. Last week, the company announced the expansion of its NANT Cancer Vaccine program in pancreatic cancer to target a number of additional tumor types. Monday's move broke the stock out of its nine-month downtrend. Next lateral resistance at $5.65-.70 is the target, followed by $6.75.
Omeros Corporation (NASDAQ: OMER) is challenging an important resistance level it has tested twice before in the last six weeks. The stock gained $1.81, or 11.8 percent, to $17.10 on Monday, closing just beneath this lateral resistance level. A breakout could move the stock to $19.50 and then the rising channel top near $23-$24. The company announced this morning that the FDA has granted breakthrough therapy designation to its drug candidate for treating Immunoglobulin A nephropathy and other kidney diseases.
On the short side, PCM Fund, Inc. (NYSE: PCMI) declined by 80 cents, or nearly 4 percent, to $19.30 on 133,400 shares traded Monday. The stock reached an all-time high of $28.05 on March 1, but has dropped sharply since then. Monday's move came on news of an additional shareholder class action lawsuit against the company. Price may have broken its bearish flag pattern on Monday, and if so, it could easily drop first to $18.50 and then to $14.25.
Veritiv Corp (NYSE: VRTV), which closed unchanged on Monday, is looking poised to break lower. The stock, which initially broke down in March, fought its way back in a bear wedge in April, only to break down again. It is currently in another bear wedge after recently rallying off its channel bottom. A break through lateral support at $43 could get it all the way down toward the channel bottom near $35.
Harry Boxer is founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.
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