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"Oh mighty Isis"

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When I was a kid, I remember watching the Saturday morning cartoons. "Isis" was a cartoon where a rather attractive woman that was an everyday person would shout "Oh mighty Isis" and the skies above would turn turbulent, the wind would blow and she would turn into a super hero dressed as an Egyptian goddess.

In the case of Isis Pharmaceuticals (NASDAQ:ISIP) the skies are parting, and the first sign of technical resistance looks to be the $29 level. If achieved, that would be a 16% gain from current trading near $25.

Isis Pharmaceuticals Chart -

The point/figure chart of ISIP is bullish with a prior bullish vertical count dating back to mid-August giving us a longer-term bullish price objective of $34.50. That's pretty darned close to the top of our "rolled up" and fitted retracement. I like the stock bullish on today's further breakout. MACD is turning higher. Short-term bulls can target the $29 level with a stop just below 61.8% retracement at $23.95. Longer-term traders/investors can use a stop under the $21 level and target the $33.50 level, which would be just shy of the longer-term bullish vertical count and 100% retracement bracket.

I consider Isis Pharmaceutical (NASDAQ:ISIP) a "biotech" stock. The company is engaged in genomics-based drug discovery and development is based on RNA (ribonucleic acid.) From this technology, the company has put one product on the market and built a pipeline of 11 products currently in development, of which 6 are in late stage phase II or III clinical trials. Isis was an ancient Egyptian goddess of fertility, the sister of Osiris.

Jeff Bailey
Senior Market Technician
Option Investor

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