I run a bullscan multiple times per day. It looks for stocks that can be higher flyers due to a combination of momentum indicators and short interest for fuel. This bull scan gets posted daily on the Dragonfly Capital Facebook (NASDAQ:FB) page at the end of each day. For the past two months this scan has been loaded up with Technology and Services sector names. Some days more that others, but those two sectors have mad up the majority of the stocks on the scan.
Today that changed. As I write this the broad market is moving sideways and the make up of the bull scan has shifted. Technology and Services sectors still make up half of the list. But the other half is now made up of entirely the Healthcare sector. There are 13 names in all and 6 in Healthcare. But diving even deeper, 5 of those 6 are Biotech stocks, and one in particular, ARIAD Pharmaceuticals Inc (NASDAQ:ARIA) is breaking out.
The chart above shows the stock started higher out of a wedge in February with a slow trend higher to a peak in early June. A short pullback to a higher low in late June then saw a steep move up in July yo a plateau in early August. It sat there, consolidating for 6 weeks after that. Wednesday it broke that consolidation range to the upside. The break gives a target to 13.60. Momentum is strong with the RSI in the bullish zone and rising while the MACD is about to cross up. And the Bollinger Bands are also opening to the upside.
Leadership may be changing and it would be none too soon for the Biotech stocks. Keep your eyes on this space.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.