Ariad Pharmaceuticals ($ARIA) has been added to the watch list. It broke the long term down trend line on about 1.5x avg volume. It closed above its 200D ma for the first time since March and cleared the overhead supply around $20. Of course, Alexion ($ALXN) got the party started for the biotechs on the buyout rumors of Roche, which may provide a spark for the overall biotech sector. Regeneron ($REGN) +7%, Biogen ($BIIB) +1.36%, etc.
Our game plan for ARIA: Depending on how this plays out, we are going to be looking for a back test of the descending trendline and we would like to see it hold to enter a long position. Next resistance comes in around 22.25, so on a continuation play we will be watching that area as well.
Vertex Pharmaceuticals ($VRTX) broke out of its range after consolidating for 4 months. MACD curling and we would like to see this hold 85.9 for a long, or a continuation above 88.
Vivus ($VVUS) broke out of its longer term down trend, and has a short term ascending triangle which acted as resistance on Friday. MACD is curling bullish and we will enter a long position only if this breaks above 15.35.
As always when trading biotechnology stocks, check the companies events page.