Technology and biotechnology stocks once again top our list of momentum charts to watch.
Achaogen Inc. AKAO, +0.19% had an important snapback session on Tuesday, gaining $2.12, or 9.7%, to $23.90 on over 2 million shares traded. The move came on news that venture capitalist Robert Duggan disclosed a 5.7% stake in the late-stage biopharmaceutical company. Volume was the strongest on an up-day all year, and the stock has now bounced off rising trendline support after a 10-day pullback from the top of the channel to the bottom. If the stock can get through resistance, which is now up around Tuesday’s high at $24.46, it could challenge recent highs around $26.75-$27.75 on the way to the top of the channel at over $30.
Cara Therapeutics Inc. CARA, -4.59% had a nice follow-through on Tuesday, jumping 94 cents, or 5%, to $19.09, on 7.6 million shares traded. The biotech company reported positive results in a trial of a treatment for uremic pruritus, or UP. The stock reached $20.24 intraday, the highest it’s been since September 2015. It came down in the afternoon and didn’t close great, but from the standpoint of the daily pattern as well technicals and volume, the stock looks strong. It has climbed nicely off rising trendline support toward mid-channel in the past two weeks. The stock needs to hold lateral support at around $17.50. A move through Tuesday’s high could lead to $23 short-term and $27 intermediate-term.
Kopin Corp. KOPN, +0.24% maker of wearable technologies and display products, had nice action on Tuesday, especially in the afternoon when it ran from about $3.90 to $4.19, backing off a little at the close. Net on the day, it gained 8 cents, or 2%, to $4.11 on strong volume of 643,000 shares. Volume has been strong in general in the past few weeks, indicating possible accumulation, and Tuesday saw the stock edge above its breakout point at around $4.09. Watch for $4.75 and then $5-$5.25 as targets.
Nektar Therapeutics NKTR, -4.01% had a breakout session on Tuesday, up 55 cents, or 2%, to $23.93 on 1.7 million shares. The company announced on Monday it has begun dosing in a Phase 1 study of its new biologic therapy to treat auto-immune diseases and inflammatory disorders. The move broke the stock out of a week-long consolidation zone that followed its nearly 50% gap up on March 20. The move came on only average volume. Nonetheless, watch for a run at $26 short-term.
Western Digital Corp. WDC, +2.27% is on the move. Stock in the data-storage company has been up five days in a row since its March 21 close at $73.22. Investors appear to have been encouraged by Micron Technology’s MU, +0.75% strong quarterly forecast late last week, and optimism about memory and storage chip demand. On Tuesday, WDC gained $1.99, or 2.5%, to $80.56, on nearly 4 million shares traded. The stock is right at a lateral resistance level, and a pop through there could get it to $86-$87 and then the channel top near $95.
Previously Posted on MarketWatch