Stock Chart GERN

Posted by downtowntrader | 2/03/2009 09:52:00 PM | 0 comments »

Stock Chart Analysis GERN

Geron Corporation(Public, NASDAQ:GERN)

While the general markets seem to be at a stalemate, several individual stocks are acting well. Stocks like AMZN, APOL, and ASEI have been trending well and it appears that at least some money is finding its way back into the market.

One group that has been trading well recently are Stem cell related stocks. GERN is a stock in this sector that has seen an increase in trading activity recently when they announced the first embryonic stem cell trial in the US. It gapped strongly on the heels of the announcement and has refused to give up much of price gain in subsequent trading. It appears to be forming a bull flag which is among the most powerful chart patterns. Stocks often consolidate these breakouts in tight flags and often resume the initial move after resting. The measured move for bull flag breakouts is the length of the flag pole, which translates to about 3 points in this chart. I typically watch for the 9 day ema to catch up to price and often it will rally from there. While it's not guaranteed, it is one of the patterns I look for. Another alternative, is a more prolonged consolidation, that becomes more of a triangle or rectangle base. In either case, GERN is one that merits a close watch.

Good Trading,