While the overall market is still sorting out how to deal with its recent (and outsized) gains, a handful of biotech names are - as usual - doing their own thing. Among the most look-worthy are Savient Pharmaceuticals, Inc. (NASDAQ:SVNT), Cardiome Pharma Corp. (NASDAQ:CRME), and Entest BioMedical Inc. (PINK:ENTB), though not necessarily for bullish reasons. Take a look.
First and foremost, I'm not a big fan of poaching someone else's trades or ideas... unless I really really like them (and then I'm ok with it). I do want to give credit where it's due, however, so it was James Brumley who first noted how bullish Entest BioMedical Inc. was acting back on January 30th. Just consider this an updated look of his view on ENTB.
In short, good news - ENTB has continued top fight its way above and beyond the key moving averages Brumley first mentioned as the bullish cue. In the meantime though, a ceiling has formed right around $0.0024. That's fine. In fact, it may work to a newcomer's advantage, staving off an excessive runup that can only end with a sharp pullback. The bullish underpinnings are there for Entest BioMedical, though, and the longer this gestation period for the stock lasts, the better the breakout will be. Point being, put it on your watchlist, though not necessarily in your portfolio.
Speaking of stocks that are starting to run higher after beating beaten down for months, check out Cardiome Pharma Corp. Yes, this is the same CRME I was talking about back on January 31st when I made a brief list of stocks that were shrugging off the market's weakness. I just liked the way this chart had built a base around $0.43, and then used it as a launchpad. Though there's still one hurdle left, this stock looks like it has the right stuff to clear that one too.
The key, of course, is $0.53. CRME has brushed that line twice in the past few weeks, and has peeled back from it both times. The 20-day moving average line (and the 50-day) has been good support though, and kept the bulls within striking distance. The bears have had their chance to knock it over again, however, and have yet to do so. So, Cardiome Pharma is another one for your watchlist if not ready for your portfolio.
Last but not least, although I wash there was something else I could say here, Savient Pharmaceuticals, Inc. just went from bad to worse. The stock was already fading, guided lower by some resistance at its 20-day moving average line over the course of January. As of today, however, SVNT is breaking lower. In fact, it's reached a multi-week low, and is still accelerating in that direction.
There's a little solace here for faithful fans of SVNT... there's a key floor at $0.50, which prompted a sizeable rebound effort last fall. The problem is, there's not much between here and there that could prevent Savient Pharmaceuticals from falling all the way back now that the bears have some momentum.