Upgraded Biotech Flashes Short-Term Buy Signal

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Dendreon Corp. (NASDAQ:DNDN) — This biotechnology company focuses on the discovery and development of novel therapeutics for cancer patients. Its leading drug, Provenge, a prostate cancer therapy, began sales in 2010.

Recently, the stock was upgraded by research firm Sanford C. Bernstein whose analyst said that Provenge is expected to have a 10% to 20% increase in usage, and raised its price target from $7 to $10. Also noted is an upgrade from an analyst at Summer Street Capital who targets the stock at $18, and a report that BlackRock had recently purchased 5.6% of the outstanding shares.

Technically, the stock is breaking from a bullish saucer formation and recently flashed a short-term buy signal when its 20-day moving average crossed up through its 200-day moving average. The trading target for DNDN is $9 to $11.

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