In this Article, we take a close look at two upcoming Biotech stocks in Gilead & Anika. Biotechs Gilead Sciences (NASDAQ GILD) and Anika Therapeutics (NASDAQ ANIK) are among just a few stocks in the Spotlight screen that are still hovering near buy points.
Anika, which makes treatments for tissue protection, healing and repair, cleared a 49.47 buy point of a cup-with-handle base on June 9. Volume was heavy, but the stock staged a bearish reversal that day, ending below the buy point. Anika later got support at its 50-day line and tried to retake the buy point on July 2. But volume was weak and the stock again finished below the entry.
Anika’s base is a late-stage pattern, making it risky. The stock has already enjoyed a strong run, more than tripling since it cleared a cup-with-handle base in May 2013.
Biotech Stock News
Gilead, which relies heavily on its breakthrough hepatitis C drug Sovaldi, has fared somewhat better than Anika. Its stock is now at the top of its buy range after clearing a cup-with-handle base on June 30. The base was a less-risky first-stage structure. However, the breakout wasn’t auspicious, as volume was below average and, like Anika, the stock reversed lower to end the day below the buy point.
Gilead’s Accumulation/Distribution Rating is still positive at C+, and its relative strength line is holding near its recent highs. Also, fund ownership has risen for eight straight quarters, with top-notch institutional investors such as the Fidelity Contrafund and Fidelity Magellan Fund holding stakes.
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While nothing specific is lined up, stay tuned for the usual pipeline and regulatory updates. Moreover, with AbbVie upping its offer for Shire, these two companies will be in the news as investors mull the renewed offer. If the acquisition goes through, AbbVie will join a string of U.S. health care companies that have been looking towards overseas acquisitions to lower their tax rates. Earnings updates should also start trickling in over the next few days.
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