4 Momentum Stocks to Watch for Traders
07/12/2017 2:53 am EST
Strong technical momentum and positive news are powering some of the stocks we follow. Here are four to watch.
Amicus Therapeutics, Inc. (FOLD) performed phenomenally on Tuesday (July 11), popping $2.66, or 26%, to $12.92, on 24 million shares traded. The move followed positive FDA submission news for the company, which may have wider implications for quicker drug approvals in the wider biopharma market. The expected next targets at $11 and $13 were both hit. The large breakaway gap created Tuesday from an established 6-month base could be a sign that this stock is going higher. The next targets are $15 and then $18. Short interest of 12.7 times its average volume could fuel the move as shorts cover on a rally.
Kronos Worldwide, Inc. (KRO) ran all the way up to $20.64 Tuesday before closing at $20.47, up 88 cents, or about 4.5%, to $20.47 on 1 million shares traded. That’s the biggest volume for the chemicals stock since its move up in early May. It was also the stock’s highest closing price since 2012. Price had broken out of its 50-day moving average on July 3. From here, watch for an extension up to $23-$24.
Sangamo Therapeutics, Inc. (SGMO) may have broken out of a 2-week bull flag consolidation, closing up 55 cents, or 6.3%, to $9.25 on 1.2 million shares traded Tuesday. The biopharma stock had begun its ascent when a clinical partnership with Pfizer (PFE) was announced in May and then continued up following a public stock offering announced in June. Price has risen 112% since earnings two months ago. If it extends, watch for a move through $9.65 to get up to $10.25, and then into the $11.50-$11.75 range.
Square (SQ) broke out of its bull-flag consolidation, moving as high as $25.56 and closing at $25.44 on 17.6 million shares traded Tuesday. The move came after an analyst at Loop Capital Markets suggested that PayPal Holdings Inc. (PYPL) should buy the company. The mobile payments stock has gained $4.49, or 21%, since May 22, and could continue higher into the $27-$28 zone.