With just a quick glance, Ibio Inc. (NYSEMKT:IBIO) doesn't look like anything particularly special. The stock's just bouncing around, and we've not heard any particularly meaningful news from IBIO in a few weeks.
When one takes a step back and looks at the bigger, longer-term picture of Ibio Inc. though - and looks at a chart in particular - things change for the better. With a review of the weekly chart, today's surge clearly becomes the proverbial icing on the cake... the confirmation of a rebound that's been materializing since the beginning of the year. This may well be the ideal time to step into an IBIO position.
First things first. Ibio is a biotechnology company... essentially. Its claim to fame isn't a breakthrough drug per se, but rather, a dug-development platform that can make therapies that can't be made in other ways. Though its working on twelve different drugs right now using the iBioLaunch platform, the majority of them are being sponsored by a third-party, with seven of them in preclinical stages and years away from launching. In fact, the two drugs that are furthest along in their development by IBIO are still only in Phase 1 stages, and will take years until they're bearing revenue. Nonetheless, biotech stocks trade based on their perceived long-term value, and the perception of iBio Inc. is quickly becoming a bullish one. Traders should take note of the clues the chart is giving. On that note...
As interesting as iBioLaunch is, it's not the part of the story that's most compelling right now. It's not the recent news from iBio Inc. either, because frankly, there hasn't been a great deal of news of late. What's most interesting right now is the way the chart has fought its way into a budding bullish trend.
As was noted above, one has to take a big step back and look at a weekly chart of IBIO to really soak it all in, but it's there. After a pretty miserable year (and then some), iBio shares finally popped back above their long-term moving average lines in January of this year. As one would have expected, the stock slumped shortly after the big surge, and it would have been easy to mentally shelf it again. Doing so would have also been a big mistake, however. With today's advance, iBio Inc. shares have just officially logged their first higher low in years.
The clincher is the fact that this week's bullishness has unfurled on strong volume. Granted, it's not the kind of volume we saw with the downtrend-breaker in January. But, the buyers are plowing in en masse, and have shaken the stock out of a short-term rut around $0.55, as is best illustrated with a daily chart of IBIO.
It's just a nudge, but a very important - and very buy-worthy - nudge.
For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.
No comments:
Post a Comment