Don't get me wrong - fundamentals and potential revenue matter. They're not the only thing pushing stock prices around though. The fact of the matter is, charts can tell you about as much about a stock's future price as anything else can. That's what makes Horizon Pharma Inc. (NASDAQ:HZNP), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), and Uni-Pixel Inc. (NASDAQ:UNXL) so interesting today. In all three cases, the chart has dropped hints about future movement, and the direction of that movement. Take a look.
If the name Idenix Pharmaceuticals, Inc. rings a bell, it may be because I took a similar look at it back on May 23rd. I liked the way it had pushed off a key support line, and was pushing off the 200-day moving average line (green). The only hurdle at the time was the 50-day line, which IDIX has since cleared... twice. It's the second bullish wave (and another push off of the 200-day average line) that has pretty much sealed the deal as far as I'm concerned - the bulls aren't backing down or giving up, no mater how hard the bears push pack.
IDIX is a biopharma developer, with most of its focus being placed on developing its treatment for hepatitis C. Though the acquisition-mania from early in the year (that drove s many HCV players' stocks up) has since waned, Idenix Pharmaceuticals has withstood the test of time and lethargy. That's a testament to the strength of its pipeline, which is to say, odds of success. The next round of meaningful efficacy results won't come out until 2013, but biotech traders know these stocks trade several months into the future.
If you owned Uni-Pixel Inc. last year and 2010, then odds are good you're still seasick. This chart was all over the map between $4.00 and $9.00, several times. Over the last few months though, UNXL has settled down. More important than that, the stock has settled into a mild uptrend that's slowly picking up steam now that all the key moving average lines have been crossed. Indeed, it's the only outright 'buy' of the three names in question.
UNXL is a fairly diversified company, though the bulk of its business is focused on supplying the display-screen industry with new, high-end, touch-screen technologies. It's developing a polymer film that has several applications... the kind of behind-the-scenes thing you may have used at some point without even knowing. While Uni-Pixel Inc. isn't generating revenue yet, it's on the verge of breaking into the touch-screen market with its tech. Watchers are starting to become believers, hence the settling into a budding bullish groove.
Last but not least, though Horizon Pharma Inc. seems like it's gone nowhere for four months (because it hasn't), that doesn't mean it hasn't been doing something important that whole time. The fact is, HZNP has been getting squeezed into the tip of a converging wedge. There's not much room left though, so one side or the other is going to have to break soon. Given how we've seen bullish moving average crossovers, not to mention how the stock itself has pent more time than not above those moving average lines, the odds favor a bullish breakout. And after a four-month buildup, it could be a monster move.
HZNP is another biotech company. Its claim to fame is DUEXIS, for rheumatoid arthritis, though RAYOS - also for RA - is looking promising. It's still got a long way to go before revenue gets anywhere close to covering its cash burn, but Horizon Pharma does have the potential to make that happen. The brewing breakout is a short-term technical one though, which won't be related to the company's long-term potential.