Today RDUS – Radius Health released good news and the stock gapped higher. As I outlined in my previous post Getting exposure to high quality set-ups like RDUS – Radius Health is the way to go. This simply increases the odds for good things to happen.

Assuming RDUS will close strong, this will leave a strong white candle on the chart and a clearly visible gap. My best guess would be for it to be a measuring gap. These often tend to occur right in the middle of a move. In this case this would imply a technical price target slightly above 100$. If my analysis is correct the gap won’t be filled until the target is acquired. Right now, for position traders RDUS is a great stock to hold. Especially if you entered using the stop buy I suggested earlier. As long as the stock stays strong and acts well, ride the uptrend.

Click on RDUS chart to enlarge:

RDUS Radius Health Biotech Stock Measuring Gap Technical Analysis Price Target Chart Trend Following

Conclusion: Let your winners run.

Few people have absorbed the hard neuroscience research that reasons arrive afterwards. - Charles Faulkner Trading Quotes

Few people have absorbed the hard neuroscience research that reasons arrive afterwards. – Charles Faulkner

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The biotech sector keeps producing big winners. KYTH – Kythera trading at new All Time Highs announces takeover. The technical set-up both KYTH and RDUS have in common is that both are trading at all time highs and offer lots of pattern pressure. Now that doesn’t mean RDUS will get taken over, but closing at a new all time high most often means odds for more good things to come are very high.

As Jesse Livermore says:

Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend. – Jesse Livermore

Jesse Livermore Trading Quotes Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend. Jesse Livermore

The RDUS – Radius Health chart looks great and if you follow me on Twitter you got stopped into the stock today like I did.

Click on RDUS daily chart to enlarge:

RDUS Radius Health Biotech Strong Stock New All Time High Bullish Chart Technical Analysis

Today RDUS closed at a new all time high and looks poised to go much high if we get bullish follow through.

Conclusion: For good things to happen you simply need to get exposure to high quality set-ups. The easiest way to do so is to focus on stocks trading at or near their all time high.

Update 06/18/15: Potential technical price target: 100$

http://www.tischendorf.com/2015/06/18/rdus-radius-health-measuring-gap-potential-technical-price-target-100-us-dollar/

RDUS company description from Yahoo finance:

Radius Health, Inc., a biopharmaceutical company, focuses on developing therapeutics for patients with osteoporosis and other serious endocrine-mediated diseases in the United States. The company’s lead product comprises abaloparatide SC (BA058), a novel synthetic peptide analog of parathyroid hormone-related protein that is in Phase III clinical development for use in the reduction of fractures in postmenopausal osteoporosis; and Abaloparatide-TD, a line extension of abaloparatide-SC in the form of a transdermal patch that has completed Phase II clinical trial, which is used to increase bone mineral density. It is also developing RAD1901, a selective estrogen receptor down-regulator/degrader, which is in Phase I clinical trial for the treatment of metastatic breast cancer and other estrogen receptor mediated oncology applications, as well as in Phase II proof of concept study for the treatment of vasomotor symptoms; and RAD140, a nonsteroidal selective androgen receptor modulator for the treatment of breast cancer or other conditions. The company has collaborations and license agreements with Nordic Bioscience Clinical Development VII A/S; 3M; Ipsen Pharma SAS; Eisai Co. Ltd; and Lonza Group Ltd. Radius Health, Inc. was founded in 2003 and is headquartered in Waltham, Massachusetts.

When you’re faced with a tough decision, remember, success requires that you do what most people are unwilling to do, and then just do it! – Mark Minervini

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Just a quick post tonight highlighting two excellent looking charts. The first one is MSCC – Microsemi which is trading very close to its all time high. The other one is KYTH – Kythera Biopharmaceuticals which printed a new all time high today.

What I like about both set-ups is that they offer a lot of pattern pressure and are not overextended. That means that they both offer a lot of ‘Blue Sky Upside Potential’ if the upside momentum keeps going.

Click on MSCC daily chart to enlarge:

MSCC Microsemi Near New All Time High Technical Analysis Stock Cahrt Pattern Pressure Bullish Semiconductor

Click on KYTH weekly chart to enlarge:

KYTH Kythera Biopharmaceuticals New All Time High Technical Analysis Stock Cahrt Pattern Pressure Bullish Biotech

Conclusion: Both stocks offer tremendous story stock potential. The beauty of stocks trading at or near all time highs is that you can ignore the story if you so choose and simply trade them using technical analysis.

Update 06/17/15 – Takeover announcement:

KYTH Kythera takeover announcement AGN Allergan Bullish Chart All Time High Technical Analysis Case Study

Here are the two most recent MSCC news releases. I highlighted the important keywords / sentences:

‘Microsemi Delivers Best-in-class Audio Features for Ambarella-based IP Camera and Wearable Applications

The new devices are the most suitable alternate to ASICs providing a low power, cost-effective, secure and reliable solution for automotive applications including advanced driver assistance systems (ADAS), vehicle-to-vehicle/vehicle-to-everything (V2V/V2X) communication and electric/hybrid engine control units. In addition to AEC-Q100 certification, Microsemi offers its customers SEU immunity, award-winning security features and a secure supply chain.

KYTH company description from Yahoo finance:

KYTHERA Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of prescription products for the aesthetic medicine market in the United States and internationally. Its product candidate ATX-101, is an injectable drug in late-stage clinical development for the the reduction of submental fat. The company also maintains research interest in hair and fat biology, pigmentation modulation, and facial contouring. It has a collaboration arrangement with Bayer Consumer Care AG and a related collaboration agreement with Bayer Consumer Care AG’s affiliate, Intendis GmbH to develop and commercialize ATX-101 outside the United States and Canada. The company was formerly known as AESTHERx, Inc. and changed its name to KYTHERA Biopharmaceuticals, Inc. in July, 2006. KYTHERA Biopharmaceuticals, Inc. was founded in 2004 and is headquartered in Westlake Village, California.

Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend. – Jesse Livermore

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Here’s a great looking Biotech chart displaying all the things I am looking for. Regular readers should know what is coming next. You guessed it. A bullish ABC pattern set-up.

CLLS – Cellectis is offering a picture perfect set-up. As outlined in my chart annotations this is what the chart is offering right now:

  • Flat base
  • Huge thrusting move on tremendous volume
  • Tight / Low volatility consolidation
  • Decreasing volume during the contraction / consolidation pattern

As soon as volume starts to kick in the stock should resume its uptrend. The ABC pattern is really simple. In most cases the trend leading into the consolidation pattern resumes once the consolidation is completed.

Click on daily CLLS chart to enlarge:

CLLS Cellectis Bullish Flag Set-Up Technical Analysis Chart Pattern Biotech Cancer Car T-Cells

Conclusion: The minimum technical target should be 50.00 $ when the uptrend resumes.

CLLS company description from Yahoo finance:

Cellectis, a biopharmaceutical company, develops cancer products based on engineered T cells armed with a chimeric antigen receptor for the treatment of liquid and solid tumors. Its lead product candidate, UCART19, is an allogeneic engineered T cell product for the treatment of CD19 expressing hematologic malignancies that developed in chronic lymphocytic leukemia and acute lymphoblastic leukemia indications. The company’s products also include hematopoietic tumors, such as UCART123 and UCART33 for acute myeloid leukemia indications, and UCART-BCMA and UCART38 for multiple myeloma indications, as well as solid tumors comprising UCART5T4 for various solid tumor indications and UCART-EgfrVIII for glioblastoma indications. In addition, it is focused on life sciences to build products based on genome engineering technologies in various fields and markets. Cellectis was founded in 1999 and is based in Paris, France.

Do not go where the path may lead, go instead where there is no path and leave a trail. – Ralph Waldo Emerson

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About a week ago I tweeted a monthly chart showing the UNG – Natural Gas ETF’s reversal candle and its potential for a tradable bottom:

For those of you who can’t see the embedded tweet, click on the UNG chart to enlarge:

UNG UGAZ Natural Gas ETF Bullish Monthly Chart Hammer Reversal Candle Technical Analysis

What prompted me to post that monthly chart is what I would interpret as ‘seller’s exhaustion’. UNG was unwilling to go lower. When that’s the case the only way a stock can go is up. So far the trade has worked. Make no mistake, this is not a ‘strong chart’ type of trade. There is massive overhead resistance. But if UNG’s reluctance to go down is for real, this kind of set-up has the potential to develop into a short squeeze inflicting serious pain on short sellers.

UNG Natural Gas ETF - Price Targets

As you can see, my chart annotation shows the various potential upside targets if my ‘seller’s exhaustion’ thesis proves to be correct. Although UNG could pull back anytime my minimum upside target remains 14.82, the most recent high. A more optimistic target would be the gap area around 15.30. If we are to witness a full blown short squeeze UNG could be on its way to test the declining moving average 200. For very aggressive players UGAZ the 3x leveraged ETF would be a way to play this potential move.

Successful traders tend to be instinctive rather than overly analytical. – Joe Ritchie

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MOO Agribusiness ETF Chart Generating Multi-Year Technical Buy Signal

May 11, 2015

The Market Vectors Agribusiness ETF MOO has generated a multi-year technical buy signal on the weekly chart. The daily chart shows a break-away gap on Friday, albeit on low volume. As you can see in my chart annotations a pullback to the breakout level would represent a more or less ideal buy point. As MOO […]

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GLD Gold ETF Chart – Bearish Technical Price Target Remains Below 100 US Dollar

April 27, 2015

Gold remains in a confirmed downtrend. Price action has been bearish for several years now and remains bearish. My job as a trader is to objectively analyze price action. I tune out all the noise and I don’t care about opinions. A year ago I did the following technical review of Gold – GLD ETF: GLD – […]

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MIFI Novatel Wireless Bullish Monthly Chart Buy Signal – IoT + M2M Winning Stock

April 22, 2015

The stock I labeled as my Favourite Aggressive Small Cap Play when it was trading @ 3.30, went on to confirm its W – Bottom pattern and today generated a long-term buy signal on the monthly chart confirming the strong new uptrend. MIFI – Novatel Wireless is now flashing an all green signal on multiple timeframes. Along the […]

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SUNE SunEdison Bullish Solar Stock Chart For Trendfollowing Traders

April 17, 2015

Tonight’s stock is a great looking chart that is well suited for trend following traders. The solar stocks as a group are starting to gain some serious traction. That is precisely when you want to take a closer look at the sector. My job as a trader is to seek exposure to the strongest stocks […]

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IWM Russell 2000 Small Cap Index ETF – Very Bullish Moving Average Expansion

April 16, 2015

The Russell 2000 Small Cap Index ETF IWM is about to run higher. As usual my opinions are not important. I trade the charts. And the chart of IWM – Russell 2000 ETF is extremely bullish right now. Here is why: IWM closed at a new all time high We have an ABC pattern playing […]

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