Time For The Newer Biotech Companies To Wake Up?

With companies like Pfizer giving possible hope for an end of year vaccine and a recent gap up in IBB (Nasdaq Biotechnology ETF), now could be a good time to keep an eye on newer issues in this sector.

Large amounts of buying came into IBB Friday. The price initially broke Thursday’s low of 133.91, only to rally back and close over the 50-DMA.

If it can hold this level as support, heading back to the July 7th high of 146.53 looks increasingly possible.

Above we have BEAM Therapeutics. Note you won’t find the 200-DMA on the chart because this company has only been public since February.

On September 4 a double bottom was formed and now BEAM is almost back to its high of 31.00.

Watching for a break of these levels could be a potential active trade with a tight risk.

Also Mish talked about BBIO in her Weekly StockCharts video when it was trading around 38. As an active trade heading to new highs this has great potential and a huge amount of strength on the Real Motion Indicator.

While still great for an active trade with tight risk, keeping this one on the radar for a pullback or some consolidation could be worth waiting for.

BNR has had a clean correction pulling back to the 18 range.

A confirmation over the 50-DMA, which should coincide with a break of the recent high of 24.89 on August 28th, is where I’m currently watching.

These new issues are exciting to watch, but one other mention is based on late breaking news when President Trump announced all Americans will have a vaccine available to them by April 2021.

Moderna MRNA, closed just shy of its 50-DMA late Friday. As the potential leader of getting the alleged vaccine, keep your eyes on this stock as well.

We all need hope and the biotech space could very well be the next leader as computer technology takes a breather. Don’t take my word for it. Please carve out 30 minutes to have a listen to Mish’s broadcast on StockchartsTV.com.

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