Option Investor
Market Updates

"Oh mighty Isis"

HAVING TROUBLE PRINTING?
Printer friendly version

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

Intraday Update Archives