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Take a look at Agouron Pharmaceuticals. It broke out yesterday.
I picked up some at open today for $74.
Agouron recently received FDA approval for a new anti-AIDS drug,
Viracept. *Huge* market potential. OTOH, no net earnings yet.
AGPH has been on a steep uptrend since Dec 95, interrupted only by the
corrections of July 96, and last month.
Short-term, AGPH has been in a downtrend channel since late Feb. The
channel is defined by the highs of 2/26, 4/14, and 5/5. The bottom of
the channel is defined by the lows of 3/19 and 4/28. These two lines
are parallel, and also parallel to the 50-day MA for the last month.
The resistance line was violated once, on 3/14, the day the FDA
approval was announced. I am ignoring this one, because the stock was
opened high by the Market Makers, then quickly fell back into the
channel.
On 5/9 and 5/13, AGPH refused to head back down to make a new low.
Yesterday (5/15), AGPH broke out of the channel at about 71 1/8, and
climbed to 74, closing at the high of the day. (last night I put in a
limit order at the bid.) Today it is trading at 77.
There is still plenty of time to get in. After a breakout like this,
a stock can climb for a week or two.
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