With companies like Pfizer (PFE) giving possible hope for an end of year vaccine and a recent gap up in Nasdaq Biotechnology ETF (IBB), now could be a good time to keep an eye on newer issues in this sector.
Large amounts of buying came into IBB Friday. The price initially broke Thursday’s low of 133.91, only to rally back and close over the 50-day moving average.
If it can hold this level as support, heading back to the July 7th high of 146.53 looks increasingly possible.
So let’s look at some newer issues and stock ideas here. Below you will find BEAM Therapeutics (BEAM), Moderna (MRNA), (BBIO), and (BNR)
Above we have BEAM Therapeutics. Note you won’t find the 200-DMA on the chart because this company has only been public since February.
On September 4th a double bottom was formed and now BEAM is almost back to its high of 31.00.
Watching for a break of these levels could be a potential active trade with a tight risk.
Also Mish talked about BridgeBio Pharma (BBIO) in her Weekly StockCharts video when it was trading around 38. As an active trade heading to new highs this has great potential and a huge amount of strength on the Real Motion Indicator.
While still great for an active trade with tight risk, keeping this one on the radar for a pullback or some consolidation could be worth waiting for.
Burning Rock Biotech (BNR) has had a clean correction pulling back to the 18 range.
A confirmation over the 50-DMA, which should coincide with a break of the recent high of 24.89 on August 28th, is where I’m currently watching.
These new issues are exciting to watch, but one other mention is based on late breaking news when President Trump announced all Americans will have a vaccine available to them by April 2021.
Moderna (MRNA), closed just shy of its 50-DMA late Friday. As the potential leader of getting the alleged vaccine, keep your eyes on this stock as well.
We all need hope and the biotech space could very well be the next leader as computer technology takes a breather.
Don’t take my word for it. Please carve out 30 minutes to have a listen to Mish’s broadcast on StockchartsTV.com:
Below is a list of important stock market ETFs with trading price levels to watch:
S&P 500 (SPY) – Closed below the 50-day moving average for an unconfirmed caution phase. If can’t clear back over the 50 322-324 is the target.
Russell 2000 (IWM) – Huge volume, this has taken leadership. 151, 50-day moving average Support Resistance 156
Dow Jones Industrial Average (DIA) – 274 Key Support. 280 Resistance
Nasdaq (QQQ) – Confirmed caution phase. 260 support and target
KRE (Regional Banks) – Needs to hold 36 Support. Looking for a move over 50 and 10 DMA
SMH (Semiconductors) – Marginally broke the 50-day moving average for an unconfirmed caution phase.
IYT (Transportation) – 200 key support
IBB (Biotechnology) – Back to an unconfirmed bullish phase.
XRT (Retail) – As the modern family is doing better, 49.30 the 50-day moving average is key support
Twitter: @marketminute
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
