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Joe Gantoss
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Technical Analysis & Japanese Candlesticks Trader as a full time job, over 15 years of experience, combining with fundamentals and thorough DD to find the best entry & exit points, Biotech sector expert, following this sector for over 4 years, trading the clinical catalyst &... More
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  • $CLSN Technical Analysis:RunUp with lots of resistance points
    $CLSN had a good support level around the $2.71 point as my last analysis and start moving upward along with the markets correction, had a pause @ $3.10 point and the buyers push the price up again breaking up the important resistance point @ $3.50 but with a low volume !!!!

    This area is very complicated, full of support & resistance points, the main resistance now is the uptrend line that used as a support for a long period, and these days change his role and might used as a resistance line (the green line) we can see that the price break out the line, but retreat and close below the line. We might see a correction and recheck the $3.50 line that supposed to use as a support line this time, one more point is the price went out from the upper Bollinger Band, and might get some pressure to get back inside the bands, in the other side, breaking out the uptrend line will find another resistance point @ $3.87
    Keep watching this important levels, and the markets direction will help CLSN to follow too.

    Disclosure: Long $CLSN


    Daily Chart
    Tags: CLSN
    Sep 01 8:01 AM | Link | Comment!
  • $AEZS Technical Analysis, Positive Divergence
    $AEZS suffered from the economic meltdown as the other biotech stocks, and we saw a big drop from the $2.20 area to find a support @ the $1.44 horizontal support line as I mentioned a week ago, we saw a bullish Long Legged Doji as a reversal candlestick, followed by a bullish hammer to confirm the reversal pattern, and nice run-up from $1.44 to $1.95 in a 5 trading days.
    Long Legged Doji shows that there is a great deal of confusion and indecision in the market. This particular pattern shows that the prices moved well above and below the day's opening level, however they finally closed virtually at the same level with the opening price. The end result is only a little change from the opening price despite the whole volatility and excitement during the day that clearly reflects that the market lost its sense of direction.

    After this run-up we can see a price consolidation crating a Pennant...
    Pennant is a short-term continuation pattern that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move.
     If we look at the indicators and the momentum, we can see a Positive Divergence giving us an indication about the direction...Breaking up the pennant will give us a great run-up toward the first resistant point @ $2.19

    First of all, we have to watch the markets carefully, as the direction of the biotech sector effected from the global sentiment, and it will keep effecting $AEZS too, the coming days are very important for the markets as we saw a support in the SP-500 and a positive week, the biotech stocks will follow the markets these days, but they will have larger recovery as they suffered from a big drop, and the companies with the closest catalyst will enjoy from a great run-up if the markets find the real support and start moving side-way or upward.

    AEZS have a great potential, with a late stage as the AEZS-130 (orally active growth hormone stimulating agent) On 7/26/11, announced completion of P3 trial under SPA as oral diagnostic test for adult growth hormone deficiency, preparing for pre-NDA mtg w/ FDA to support planned NDA filing in the second half of 2011.

    Perifosine (KRX-0401) (PI3K/Akt pathway inhibitor anti-cancer agent) On 7/27/11,  $KERX the North American licensee, completed enrollment in the ongoing pivotal P3 trial for metastatic colorectal cancer, FDA Fast Track status with results expected by late 2011-early 2012

    Disclosure: Long $AEZS
    For more TA visit my blog joebiocharts.blogspot.com

    Tags: AEZS, AOIX
    Aug 29 8:54 AM | Link | Comment!
  • $AMRN Technical Analysis, The support is very close.
    $AMRN well know to most of the Biotech traders after it's huge GAP & runup on April this year, it's the dream of every trader to wake up one day and your position almost doubled overnight, the top was on May 31st reaching $19.87, but it start trading in a falling mode from that date in a downtrend channel, the price formed a support zone @ $13.30 trading 2 weeks side way, but with the help from the markets troubles and the big sell-off, it breaks down the support line and fall down till it touched the lower channel line and the 200MA to bouncing back from it...we can see that the both lines used as a support in one side and as a resistance in the second side.

    The last trading day on Friday, the price break down again the 200MA heading toward the support line @ $9.66, breaking this point will send it toward $8.82, but I believe that this support will hold, as we can see a positive divergence on the RSI14, and the last candle touch the lower line of the Bollinger Bands that "mostly" the price bounce back from it.
    Monday is an important day for the direction, if the price keep the downtrend, we might see it touching again the downtrend channel line, in the other side the $9.66 point supposed to use as a support.
    I opened a small position @ $10.10 looking for a bounce back, but if the markets keep it's downtrend, I will cut losses with a stop loss, a few points below the support line, it's a well know way of a technical traders, to start a partial position in a stock that you like to own, close to a support line, it's easy as you have a predefined stop loss, close to your buying point, and if the trend goes in your favor, you can add more in the uptrend, after the next technical correction.

    Disclosure:Long AMRN

    Aug 21 9:20 PM | Link | Comment!
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