Upgraded Biotech Flashes Short-Term Buy Signal

by Sam Collins | February 8, 2013 1:13 am

Upgraded Biotech Flashes Short-Term Buy Signal

Dendreon Corp. (NASDAQ:DNDN[1]) — 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.

02 07 13 dndn 300x208 Upgraded Biotech Flashes Short Term Buy Signal
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chart key 300x84 Upgraded Biotech Flashes Short Term Buy Signal

Endnotes:
  1. DNDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNDN

Source URL: http://investorplace.com/2013/02/trade-of-the-day-dendreon-corp-nasdaq-dndn/
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