Watch These 2 Long Trades: NK and OMER. And 2 Shorts: PCMI and VRTV

06/13/2017 2:55 am EST

Focus: STOCKS

Harry Boxer

Author, The Technical Trader

Harry Boxer is following two biotechs on the long side, NK and OMER and two shorts: PCMI and VRTV. He’s the founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis, and live chart presentations.

Two biotechs top our list of key charts to watch Tuesday (June 13) on the long side, while we also feature two shorts to play in this topsy-turvy market.

NantKwest, Inc. (NK) had an explosive move through its declining topline and lateral resistance on Monday.  It gained 69 cents, or 16.3%, to $4.90 on 1.4 million shares, the second highest volume traded in the stock this year.  Last week, the company announced the expansion of its NANT Cancer Vaccine program in pancreatic cancer to target a number of additional tumor types.  Monday’s move broke the stock out of its 9-month downtrend.  Next lateral resistance at $5.65-.70 is the target, followed by $6.75.

Omeros Corporation (OMER) is challenging an important resistance level it has tested twice before in the last six weeks. The stock gained $1.81, or 11.8%, to $17.10 on Monday, closing just beneath this lateral resistance level.  A breakout could move the stock to $19.50 and then the rising channel top near $23-$24. The company announced Tuesday morning that the FDA has granted breakthrough therapy designation to its drug candidate for treating Immunoglobulin A nephropathy and other kidney diseases.

On the short side, PCM, Inc. (PCMI) declined by 80 cents, or nearly 4%, to $19.30 on 133,400 shares traded Monday. The stock reached an all-time high of $28.05 on March 1 but has dropped sharply since then.  Monday’s move came on news of an additional shareholder class action lawsuit against the company. Price may have broken its bearish flag pattern on Monday, and if so, it could easily drop first to $18.50 and then to $14.25. PCM, Inc. is a direct marketing company that offers technology products and services. 

Veritiv Corporation (VRTV), which closed unchanged on Monday, is looking poised to break lower. The stock, which initially broke down in March, fought its way back in a bear wedge in April, only to break down again.  It is currently in another bear wedge after recently rallying off its channel bottom. A break through lateral support at $43 could get it all the way down toward the channel bottom near $35. Veritiv is a business-to-business distributor of packaging, facility solutions, print and publishing products.

See Harry's video chart analysis on these stocks here.

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