Keryx Biopharmaceuticals Inc.is a popular topic on the “boards”. #1, in fact, on Board Central. It trades a lot of shares (average of 2.4MM shares daily) and has a tight bid/ask. Why I am sharing this with my readers is because I think that it is setting itself up for a spike.
Volume has dropped off, but the chart tells us several things: The stock is slightly oversold according to the Stochastics. The Bollinger Bands are narrowing while the stock is trading in the middle of the bands which could mean that with an increase in volume the stock will rise. The MACD is showing that it is still bearish, but is still above the zero line and could turn quickly given an increase in trading volume.
There hasn’t been too much news about KERX lately. They did successfully stave off delisting from NASDAQ which gave them a small “pop” in the stock price in mid-June. They have several promising drugs in the pipeline and the news from the FDA has been mostly positive. Like most pharma companies with drugs in development, they are bleeding money like crazy. However, they have enough funds to survive the next few quarters…or until they can raise money again.
Definitely worth putting on your trading radar!
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