Today’s buy is Ligand Pharmaceuticals (LGND), a biotech firm that develops small-molecule drugs and recombinant DNA proteins. As John Gray shows below, LGND is very close to breaking through a resistance level that would indicate the stock is reasserting its uptrend. As always, you can visit www.investorsintelligence.com for information on how to read their point and figure (P&F) charts.
Ligand Pharmaceuticals (LGND)
from Investors Intelligence
The Biomedics-Genetics [sector] bullish percentage has been one of the more resilient during the present market retreat. The chart maintains its “bull confirmed” status and a reversal down is not even close. A test of the August 2009 high at 62% remains a high probability over the next couple of weeks.
One buy signal from the group yesterday [was] Ligand Pharmaceuticals (LGND). That stock is attempting to reassert its uptrend off the 2010 low. Breaking and holding the $50 level would confirm the uptrend was reasserting, with the next level to watch being $78.18, the 2007 high.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, October 4, 2013.