Even as the equity markets registered another fall on the
back of weak global cues on Friday, healthcare stocks came to the rescue. ARCA biopharma (NASDAQ: ABIO), Alexza Pharmaceuticals (NASDAQ: ALXA) and Poniard
Pharmaceuticals (NASDAQ: PARD) jumped on Friday while the key indices lost a little more than 1
per cent. At this point, the macro picture suggests that a significant portion
of concerns including growth and sovereign debt levels is imported and do not
really emanates from the US. While it is true that the US has its own set of
problems and these are not easy issues to deal with, it is equally true that
the US markets are overreacting to the bad news coming from the Euro zone. Thus,
a sharp recovery based on better than expected news flow is very much on cards.
biopharma (NASDAQ: ABIO) jumped 7 per cent on Friday. The Colorado based biopharmaceutical
firm shut shop at $1.21, just a week after creating a new 52 week low of $1
last week. The company develops genetically targeted therapies for heart
failure and other cardiovascular diseases. On the higher side, the stock touched
a high of $4.38. Overall, the stock has lost nearly 23 per cent over the previous
month, but has given a smart breakout during the last week after strong
consolidation. Technical charts are not indicating any bullish indicator but like
many of its peers; it has certainly entered the oversold zone as indicated by the
14 days RSI value of 44. Look for more gains o Monday.
Pharmaceuticals (NASDAQ: ALXA) closed at $1.25, up 6 per cent on Friday. However, the stock
still has an RSI value of 38. The stock broke its key trend support level off
$1.7 last month and came down heavily from there to the lows of $1.1 on
intraday basis. Some positive news flow has kept the stock up after the company
announced the disappointing quarterly numbers earlier in the moth. If the market
remains positive on Monday, ALXA is one stock that is sure to do well.
Pharmaceuticals (NASDAQ: PARD) was not a big gainer on Friday but the 2.5 per cent jump was
significant as the stock had registered many hammer patterns in the last week.
The tendency to recover from intraday lows is a positive signal and shows buyers’
interest at lower levels. The stock has a 52 week range of $0.15 - $0.75.