Just for the record, no, I don't have some sort of warped allegiance to - or a position in - Hemispherx BioPharma, Inc. (NYSEMKT:HEB). I just really like the near-term opportunity with the stock. In fact, since my last look at HEB back on June 5th, I've found a reason I like it a little more now.
Nothing's happened to or with the company in the meantime. In fact, we've not heard a shred of news even about Hemispherx BioPharma, (let alone from the company) since May 8th. But, the market has continued to drop strong hints that the undertow for HEB is still brewing bullishly.
If you were around then, you may recall I suggested HEB was beginning to rally back on the 5th when shares finally poked through the technical ceiling at $0.24. The move to a high of $0.277 that day proved to be a little too much, too fast, and sure enough, Hemispherx shares began to tumble the next day, and hit a low of $0.2389 the day after that.
There was something reassuring within that pullback, though, even while the stock was falling - the selling was on very light volume. Better still, today's rebound effort is on strong volume. The whole thing tells us the HEB undertow is still a bullish one with lots of participation. The rally just needed to take a break last week.
To really appreciate just how big of a deal this small upward curl from Hemispherx BioPharma, Inc. could be, though, you have to take a step back and look at how the chart has unfurled and recovered since late last year. This stock was trading in the $0.70's as of the beginning of December, but plunged to the $0.20's in the middle of that month after Ampligen was slammed by the FDA's advisory panel. As is so often the case, however, the market may have overdone it. Since then, we've seen higher highs and higher lows, and we've seen resistance broken as a result.
It's still not the kind of stock you'd want to get married to. It's just a near-term trading idea; HEB will do well to make it back to the $0.70's within the foreseeable future. But, even just getting halfway there from the current price of $0.27 would be a nice little bump for a speculator's portfolio.
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