Proprietary Indicator Signals a ‘Buy’ for This Biotech

Qiagen NV reversed up off of its intermediate bullish support line


Qiagen NV (NASDAQ:QGEN) — This Netherlands-based leading biotech company provides products for the separation and purification of nucleic acids and molecular diagnostic assays. It has a large number of diagnostic assays in its pipeline, which should produce an increased revenue stream. 

In 2012, QGEN earned $1 per share. Consensus estimates for 2013 and 2014 are $1.10 and $1.21, respectively. 

The stock broke from a right triangle in December on a breakaway gap. It hit a new high in late January, which was followed by two continuation gaps. These are bullish technical formations, especially when accompanied by the high volume on each. 

On Friday, the stock reversed up on a buy signal from our proprietary internal indicator, the Collins-Bollinger Reversal (CBR), off of its intermediate bullish support line. The trading target for QGEN is $25, but long-term investors could reap a higher reward due to improving earnings.

QGEN Chart
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