Welcome back! I hope you all had a wonderful Christmas and holiday weekend.
It’s been three weeks in a row now of the XBI closing the week green. Indeed, the action and opportunity over the past few weeks reflect the performance of the XBI.
Gang, if this action is anything to go by, 2022 might be a great year for trading and learning!
Last week, the XBI closed up 2.26% and inched closer to the 50d MA, currently around $121.
Last week I mentioned I would like to see the following in the XBI:
“Going forward, I would like to see the XBI hold above the 20d MA and make a push towards the 50d MA, which is currently at $121.33.”
Since then, the XBI has reclaimed and held above the 20d MA.
Going forward, I would like to see the same pattern exist above the 50d MA, and then I will set my sights on the 200d MA.
While I am on last week’s topic, one stock that I spoke about outperformed the sector and remained on my watch list.
According to Yahoo, OPK engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally.
Market Cap: 3.14B
Short Interest: 11.98%
Last week OPK closed the week up 19.55% at $4.77.
When I first spoke about the stock, it traded near $4.40 and had just broken above the converged moving averages.
My exact words from a week ago were:
“I like how OPK could hold above all essential MA’s and then broke out on Friday on the daily chart. This signals, to me, that the stock has the potential for momentum to the upside.
Going forward, I will be watching to see if the stock can continue to base over $3.60s firstly and $4 as the most immediate level of support.
If the stock provides an opportunity to get long for a continuation move higher, I will look for a target of $5 -$5.50, targeting the highs from March, and have a stop placed around $3.45.”
I was referring to this chart:
I was indeed correct about the potential for further upside, as the stock has traded almost 20% higher since I wrote those words a week ago.
Going forward, however, there might still be opportunities as the stock has still not reached my target levels.
It is important to note, though, the stocks recent and upcoming catalysts:
- 29 November 2021 BioReference Laboratories Announces Readiness for COVID-19 Testing if the Omicron COVID-19 Variant Emerges in The U.S.
- 8 December 2021 OPKO receives U.S. FDA approval for the 4Kscore Test.
- RAYALDEE (REsCue) Mild-to-moderate COVID-19, Phase 2 trial enrollment completed, topline data expected by the end of 2021. Somatrogon (hGH-CTP) Children- growth hormone deficiency. PDUFA date extended three months to January 2022.
Whether or not OPK will become the next or one of the heavy-hitters in the sector will largely depend on how successful the company is in its trials and upcoming catalysts.
Going forward and in the short term, I would still be looking for the stock to reach the highs from March, around $5 – $5.50.