I was looking at several stocks this morning and ran into this one. It’s Keryx Biopharmaceuticals (KERX). Let’s look at one year chart.
Since May 2009, KERX has gone up seven-fold and it has not stopped going up. As long as it stays above the support line, KERX will continue to go up.
Three month chart shows another interesting information on KERX. Notice the descending channel forming in December? Eventually, this channel will break out and when it does, expect KERX to climb even higher. Not only should you watch the stock price carefully, you should also keep a close eye out on the volume. During December, the volume has been low, which reveals that the decline in stock price has no support. If KERX breaks the descending channel, then you should expect a strong volume support along with higher price. Otherwise, it will not be a clean break. I recommend using $2.40 as the STOP-LOSS price to get out of this stock if indeed you go LONG.
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