By Harry Boxer
A combination of good news and technical momentum are fueling two biotechnology stocks and two tech stocks that are among today’s top charts to watch.
Bluebird bio Inc. /zigman2/quotes/207450173/composite BLUE +1.92% jumped $7.15, or 8.5%, to close at $91.30, on 2.3 million shares traded Monday. The biotech company released positive trial results for its blood cancer therapy being jointly developed with Celgene . Price gapped up above its 21-day and 50-day moving averages, and closed above that, a positive sign. Near-term targets are at $100 and $110, and beyond that the channel top near $120. Short interest of 13.8 times its average volume could fuel the move as short-sellers cover their positions on a rally.
Cara Therapeutics Inc. /zigman2/quotes/208720116/composite CARA -0.66% also had a strong session on Monday, rising 64 cents, or 3.6%, to $18.20 on 1.3 million shares. The stock recently broke out of a six-week downtrend, traversing from its rising channel top to the channel bottom, and has now moved to its highest close since mid-April. Watch for a test of resistance in the $19.25-$19.35 area, a breakthrough that could lead to $21, the March high. Beyond that, the mid-channel target is $24.
Gigamon Inc. spiked up $3.55, or 9%, to close at $42.85 on nearly 2.2 million shares traded Monday. The move came on news that the networking-hardware company was considering a possible sale. Price broke through the bull wedge consolidation pattern the stock has been in for most of the past month. In the short term, a pullback may bring price into the $42 support zone, but the stock may very well head toward next lateral resistance at around $49 unless the market falls apart.
Mimecast /zigman2/quotes/202578603/composite MIME +1.93% reached an all-time high of $29.01 intraday Monday, before closing up 55 cents at $28.83 on 408,200 shares traded. After months of consolidation within its long-term rising channel, the cybersecurity-technology stock is up about 50% since mid-March. Monday’s move came on news the company is collaborating with PhishMe to help organizations improve employee awareness of email-borne attacks. Next targets are $31 and $35.
See Harry’s video-chart analysis on these stocks.
The write has no holdings in any securities mentioned in this column.
Harry Boxer is founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis and live chart presentations.