The biotech sector's getting real interesting today... which is good for some of these stocks, but bad for others. Among the most interesting -
and perhaps trade worthy - are Hemispherx Biopharma, Inc. (HEB), INVO Bioscience, Inc. (OTC:IVOB), MDRNA, Inc. (MRNA), and BioElectronics Corporation (OTC:BIEL). Here's a more detailed look at each one.
The rollover we've seen from
BioElectronics Corporation (
BIEL) over the last few weeks has been very slight, but also very clear. Worse, the transition into a bearish trend is accelerating.
You can see it reasonably well on a daily chart of BioElectronics Corporation shares, but it's even more undeniable on our weekly chart.... we've seen a bearish MACD cross from BIEL, confirmed by a string of lower highs and lower lows. Though volume hasn't been excessively string yet (on the selling side), it hasn't been light either.
If last week's low of $0.078 breaks down as support for BioElectronics Corporation this week, the next checkpoint target is $0.056. BIEL could revisit $0.001 before it's all over though.
It's still a little bit soon to say for sure where
INVO Bioscience, Inc. (
IVOB) is headed next. The breakout effort from Friday was good; today's is even better. In fact, it may be a little too strong, leaving the stock nowhere to go but lower in the near-term.
In the bigger picture though, the move did indeed break IVOB out of a slightly bearish rut, and push the chart above a couple of somewhat meaningful resistance lines. So, here's how we're playing INVO Bioscience....
We'll assume the gap from today will be closed, which means IVOB is going to pullback to at least $0.36. It may be today, next week, or who knows when? We don't know. After that, we anticipate a regrouping of the INVO Bioscience bulls - there are just too many buyers today and Friday to dismiss this as volatility.
The ultimate hurdle is the ceiling at $0.44, which just so happened to be today's high from IVOB. Once it's broken for good, look out above... INVO Bioscience will be at new 52-week highs.
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Though this is more of an update on our prior charting analysis of
Hemispherx Biopharma, Inc. (
HEB), it just so happens that it's a good setup for new bearish (short) trades as well.
Our line in the sand for HEB was horizontal support around $1.85. Hemispherx we're pressing into that floor repeatedly, each attack being stronger than the last. If the stock cracked that line, real trouble was expected.
Well, Hemispherx Biopharma shares did indeed fall under that line, triggering a breakdown move that was reversed just two days later when HEB rebounded to a peak of $2.16. It turned out to be an ill-advised jump though; the stock back under that support line after making a major (and high volume) outside reversal on Friday.
Bottom line? The breakdown is still in effect. Hemispherx could hit any of its prior lows again.
And finally,
MDRNA, Inc. (
MRNA) is all the rage today thanks to some good news that pushed the stock upward by 31%. Our only concern is that it will be a one day wonder, and tumble back to its prior bearish trend.
Working in favor of MDRNA, Inc. is the move above a major resistance line that extends back to June. Also working in favor of MRNA is today's massive volume.... that should definitely get the attention of other potential buyers.
Working against the stock is a big gap between $1.27 and $1.53.... and the fact that aside from today's boost, this stock and company are relatively unknown and unproven.
Given everything we know (or don't know) about MDRNA, Inc. we're inclined to steer clear if buying into this flawed breakout effort. In fact, we encourage you to take profits (make long exits) if you happened to be in a MRNA position before today.
If you'd like to know of any changes in our opinion of MRNA, HEB, IVOB, or BIEL (or if we officially recommend them as trades), be
sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
