Ligand Pharmaceuticals (LGND) has posted three quarters of increasing sales and earnings growth, with a beat of (+128%) in its most recent quarter.
The company also ranks No. 1 among its peers in the Medical-Biomed/Biotech industry group. Avid Bioservices (CDMO) and Halozyme Therapeutics (HALO) are also among the group’s highest-rated stocks.
Ligand (LGND) Catalysts
The company develops treatments for cancer, osteoporosis, fungal infections and low blood platelets, among others. Ligand’s partners have programs currently in clinical development targeting seizure, coma, cancer, diabetes, cardiovascular disease, muscle wasting, liver disease, and kidney disease.
The stock found support at the 50d moving average. Stochastic is firing while RSI rises back above 50. The latter would suggest the trend is strengthening. Price action also showed relative strength last week when the major indices faltered.
We intend to add to the position that we started on Monday and hold for severals weeks. Our thoughts are a continuation of the previous trend that started in 2021.
Momentum is shifting, as MACD slowly turns more bullish. This lagging indicator is suggesting a follow through is imminent. Watch for volume to increase in the coming weeks. Targets are noted on the chart with dashed lines.
60 Minute Squeeze
The 60 minute time frame is showing a tight “squeeze” with momentum oscillators suggesting a breakout would continue the prevailing trend higher. MACD and RSI on this timeframe show bulls are in control and strength of trend is persistent respectively.
Management owns 10% of the float. This is a significantly high number among stocks in the industry group.
Price action needs to close above the 9/21d moving averages to keep us interested in this trade. We started a new entry on Monday.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade LGND among other stocks, while navigating the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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