Stock Chart IDIX

Posted by downtowntrader | 7/13/2008 10:28:00 PM | 0 comments »

Stock Chart Analysis IDIX

Idenix Pharmaceuticals, Inc. (Public, NASDAQ:IDIX)

It looks like the markets will gap higher tomorrow morning based on the FRE and FNM news. Throw in a little M&A news on the Anheuser buyout and shorts may get a little squeezed. I've been noticing some rotation into Biotech stocks and Pharmaceuticals recently and they could take a leadership role in whatever rally the markets get. While IDIX is no where near all time highs, they have been one of the few stocks to remain very close to their 52 week highs and remain above their 50 day sma throughout the recent market weakness. I highlighted some lateral consolidation areas that are similar to Darvas Boxes. Notice how IDIX has been respecting the previous resistance level as support. If IDIX can clear the $7.50 area, momentum could easily carry it into the $9-10 area. While Darvas theory would place a stop below the existing "box" at around $5.50, more aggressive traders could probably get away with a stop .50 cents higher.

Good Trading,


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