Looking for a long-term breakout on a short-term chart? Check out Inovio Pharma (INO). (March 22, 2016)
INO
I want to look at Inovio Pharmaceuticals ( NASDAQ:INO ), here’s why: It’s a biotech company and it looks to me like it’s breaking out. If you look at the 200-day moving average it’s still drifting lower. But if you look at the weekly chart you really get a good sense of what’s happening,100 percent turnaround. First of all you’ve got a 1-for-4 stock split. Anytime a company splits or does a reverse split you know that’s a problem, because nobody likes their stock trading at 87 cents, so it kind of gives it more of a perceived value. But if you look at it here, this is where the stock split 1-for-4 and then continued to drift lower.
Well it looks to me like it’s trying to regain that area. We just simply draw a trendline, connect all these tops, and what do we got? We got a test of this trendline like right here, right now. It’s ABOVE the 200-day or 40-week moving average. And you look at the daily chart, check out volume was big today, I think this stock should continue to move. Now, be careful because if you’re buying it right now what you are essentially doing is saying, “I don’t think this stock is EVER going to get back in this box.” I don’t see that happening. The stock isn’t going to completely sidestep this box. It’s not going to do that. It might go up for another day or two, but ultimately what you want to do is buy it on the next zag. You get zig, zag, zig, zag, zig, zag, zig. Look for it on the next zag, say right along the 20-day moving average. Boom! There’s your buy point right there.
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