Biotech and pharma stocks have held up comparatively well this week — especially on Wednesday, when the iShares NASDAQ Biotechnology Index (IBB) gained about 0.5%, while the major indexes (including the Nasdaq Composite itself) fell nearly 1%.
For those looking to take advantage with timely biotech trades, the Profit Scanner powered by Recognia has identified four likely pharma stocks to buy for quick profits.
Read on for the details about these cheap stocks.
4 Cheap Pharma Stocks for Quick Profits: Athersys (ATHX)
You can see the two parallel trend lines that characterize the bullish flag marked in red on the chart. When the stock price breaks above the upper boundary, you can expect it to then resume its sharp rally after having taken a breather.
In the case fo ATHX stock, the Profit Scanner is looking for a rally to the $1.80-$1.90 level; that move should happen within the next 11 trading days, so this is a very quick-hit profit opportunity.
4 Cheap Pharma Stocks for Quick Profits: Nymox Pharmaceutical (NYMX)
Click to Enlarge Next up is Nymox Pharmaceutical (NYMX), which also completed a bullish flag on May 5. Based on that pattern, look for NYMX shares to reach a profit target of $2-$2.15 in the next 11 trading days, for a 50%-60% profit.
In NYMX’s chart, you can see another bullish event from May 5 — the stock crossed above its 21-day moving average.
The implication here is that NYMX is in an established uptrend and ripe for bullish profits.
4 Cheap Pharma Stocks for Quick Profits: AVEO Pharmaceuticals (AVEO)
Click to Enlarge AVEO Pharmaceuticals, Inc. (AVEO) is also looking like a good trade for biotech bulls. On May 4, the stock put in a bullish engulfing line pattern — a sign that the stock is about to reverse higher now that buying pressure has overwhelmed selling pressure.
The chart shows a clear example of the bullish engulfing line, which occurs after a clear downtrend. You’ll see two candlesticks in which the second, white candlestick completely envelops the first, shaded candlestick — a sign that bulls have now taken over from the bears.
There’s no specific target with this pattern, but the Profit Scanner is looking for upside in the very short term — about five trading days.
4 Cheap Pharma Stocks for Quick Profits: Bioamber (BIOA)
Click to Enlarge Also on May 4, Bioamber Inc (BIOA) completed a bullish inside bar. Similar to the engulfing line, the inside bar forms during a downtrend, and the breakout suggests that bears are finally losing ground.
In this pattern, you can see a second bar that’s completely within the range of the previous bar, a clue that the balance of power is shifting between bulls and bears and the stock is due for a reversal higher.
As with AVEO, Profit Scanner is looking for BIOA to make its move within a tight timeframe of five trading days.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.