Harry Boxer's four stocks that are breaking out this week
By Harry Boxer
In focus: Amicus Therapeutics, AVEO Pharmaceuticals, AXT and Dynavax Technologies
Here are four charts to watch featuring companies in biotechnology and technology that are breaking out of consolidation patterns.
Amicus Therapeutics Inc.(FOLD) rose 9%, or $1.37, closing at $16.24 on 10.5 million shares traded Wednesday. That is the stock's highest price since September 2015. The move, on more than double the stock's average volume, came with a positive analyst announcement amid news of successful clinical trials for its Pompe disease drugs. Price broke out of a two-week declining wedge pattern that held support at the bottom of the rising channel. Next targets: $18 and $21. Short interest of 10 times its average volume could fuel the move as short-sellers cover their positions on a rally.
AVEO Pharmaceuticals Inc.(AVEO) surged 5.6% to close at $3.94 on 7.8 million shares traded and no reported news by the company. Price edged above a five-week sideways coiling pattern. There is a lateral resistance level at $4.11, and Wednesday's high was $4.15. If there is follow-through from here, the cancer drug stock may see $5-$5.50 very quickly.
AXT Inc.(AXTI) advanced 25 cents and closed at $9.40 on heavy volume of 827,700 shares traded and no news reported by the company. Price broke out of a week-long flag and above lateral resistance from its August high, moving up yet again in its rising channel. Wednesday's intraday high of $9.70 breached the high of $9.50 reached on Aug. 1, bringing the semiconductor stock into a price zone not seen since February 2011. If price can move through lateral resistance, the next target is $11.
Dynavax Technologies Corp.(DVAX) rose 75 cents to close at $23.95 on relatively light volume of 1.9 million shares traded Wednesday. The stock on Monday broke out of a three-week consolidation on news that the company is evaluating the sale or licensing of its hepatitis B vaccine. The stock has gained 415% in value since Jan. 3. In intraday action Wednesday, price met an existing target level of $24. Next targets: $25 and $28.
See Harry's video-chart analysis (https://www.thetechtrader.com/chartsoftheday/AVEO-DVAX-FOLD-MRTX-201710041995.html?utm_source=MW&utm_medium=Web&utm_campaign=HarryCOD) on these stocks.