By Harry Boxer, TheTechTrader
These four stocks have strong technical momentum that could carry them higher.
Anavex Life Sciences Corp. (NASDAQ: AVXL) gained 40 cents, or 9.4%, to $4.65 on 2.3 million shares Wednesday, nearly 3x its average volume. On Monday and Tuesday the biopharmaceutical company's president and CEO presented a company update and participated in a panel at the 2020 BIO CEO & Investor Conference in New York. The move continued the stock's rapid ascent over the last two weeks, in which it has broken out of a nearly year-long sideways channel, completing an inverse head-and-shoulders bottoming pattern off its late December 2018 low of $1.25. A move through the double-top from Sep-Oct 2017 in the $5.15 range could take the stock to $6.50 next.
Luna Innovations Incorporated (NASDAQ: LUNA) rose 46 cents to $9.04 on higher-than- usual volume of 392,700 shares Wednesday. The move, on no news from the maker of fiber optic sensing, and test and measurement products, continued the stock's recent breakout of a flag. It also pushed the stock, which has nearly tripled in the last 12 months, to new highs not seen since late 2007. There's some resistance up around $10 near the top of the long-term rising channel, which is our next target.
Purple Innovation, Inc. (NASDAQ: PRPL) advanced 54 cents to $14.20 on 391,000 shares Wednesday. The move, on no news from the mattress maker, pushed the stock to a new all-time high. The stock has been on a tear in the last two months, up from the mid-$7's in December, and the next target if it continues its momentum would be around $16.
Tandem Diabetes Care, Inc (NASDAQ: TNDM) climbed $2.33 to $81.05 on 1.7 million shares Wednesday. The move came on no news from the maker of medical devices for people with insulin-dependent diabetes. The stock has been in a steep rising channel since the start of the year. It recently flagged before breaking out on Monday and then again Wednesday. The rising channel points to a target of $98-$100.
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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