DARA – Hot in BioSci
DARA is a company that came up on one of my screens that I think bears looking at. It is a typical BioSci company in the sense that they have no revenues and plently of expenses. What is noteworthy about the company is the good news that seems to be cascading around it: promising drug tests, new alliances and drugs in popular segments.
DARA has been on the rise of late, but the ride may not be over. BioSci companies have a tendency to have prolonged runs (NVAX, anyone?). They have drugs in development under three “popular” drug categories: Type II Diabetes, Cancer (for neuropathic pain) and dermatology (psiorasis).
I am not a bioscience expert and I will let someone else talk about the efficacy of their drugs or the tortourous FDA process. I will, however, talk about the chart.
As you can see the stock is under accumulation. Watch out if the RSI rises about the upper boundary. The MACD is turning bullish and approaching the zero line and the Stochastics are indicating that it is not yet overbought. The stock is pushing past resistance like it isn’t there and the only signficant resistance is the 65 to 70 cent level. After that is “blue sky”.
DARA seems to be very volatile. This might be a good one to play on the dips. Right now, it is overheated a bit, but the direction seems to be “up”.
Good luck and good trading
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