It has been a while since I put together chart analysis for biotechnology company Exelixis (EXEL), so I made it a point to do this before the market opens on Monday.
EXEL is in a clear downtrend that did breach the bottom of the trading range for one day and bounced on Friday along with the general markets. Since it did not get above $11, a key resistance level, we must remain cautious. If the markets itself can hold and the dip buyers re-enter, EXEL should see some additional buying in it as well. Since my style is to react, rather than to predict, we must remain cautious that we could trend all the way down to the 100-day SMA.
That would create a more favorable trade opportunity in EXEL if it did trend towards the 100-day SMA. It appears Monday morning has good odds of a gap-up to start the day though. Instead of buying on Monday morning gap-ups, I’m more likely to sell some of my position and wait for a pullback to reload. See the charts below for more detail.
Daily Chart 2
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As always, do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna was Long EXEL but positions may change at any time
