5 Bullish Biotech Charts

Watch the price action to confirm or refute these chart patterns

       

Diamond Bottom

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Like IMMU, Ariad Pharmaceuticals (ARIA) also focuses the discovery, development and commercialization of cancer treatments. The company’s stock has developed a diamond bottom over the past 72 days that should result in an intermediate-term trade (six-week to nine-month holding period) if the pattern is confirmed.

A diamond bottom pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamond’s boundary lines, it marks a significant reversal to a new uptrend.

Price Target: $24.70 – $25.70

Stop: $16.71

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