Don't Ignore This Chart!

High Tech Biotech Alkermes (ALKS) Tries To Recover From A Tough Setback

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Alkermes (ALKS)  appears to be a highly specialized Biotech working on rare conditions to help with managing the effect of the condition. Recently Alkermes (ALKS) took a tumble and the stock dropped from $75 to $55. Can it recover?

First of all, the SCTR has popped back up. The relative strength line shown in white is still climbing. The price clearly broke out of the downtrend and looks to have more upside.  The MACD on this stock rarely goes below zero.

Trading the Biotechs comes with huge risk and huge reward. This stock is another in the storied biotech sector.  Pullbacks are hard to find, but this has been rising for years and recently we got an opportunity to find it on sale. The stop can be relatively tight, compared to buying it at a new high.

The Biotech sector continues to be one of the strong parts of the market. As long as that trend continues, this stock should resume the upside momentum.

Good trading,
Greg Schnell, CMT

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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