Are There Any Winners Left In The Biotech Space?

It’s been a rough couple of days for biotech stocks.

To start, Gilead Sciences, Inc. GILD has dropped from a high of almost $110 per share on Friday to a low of $86 on Tuesday.

Many other big-name biotechs, such as Amgen, Inc. AMGN, Biogen Idec Inc BIIB and Valeant Pharmaceuticals Intl Inc VRX have fallen with Gilead.

The carnage surrounding the iShares NASDAQ Biotechnology Index (ETF) IBB is also worth noting. After reaching nearly $320, the ETF fell below $300 this Tuesday.

So, does all of that damage mean investors should avoid biotech stocks?

There are still plenty of ideas.

Here's one.

Related Link: 3 Charts That Show Why There's Gilead Sciences...And Then There's Everybody Else

The company: NewLink Genetics Corporation

Ticker Symbol: NLNK

Sector: Healthcare

Industry: Biotechnology

NewLink focuses on discovering, developing, and commercializing immunotherapeutic products to enhance treatment options for patients with cancer.

Its portfolio includes biologic product candidates based on its HyperAcute immunotherapy technology (which is designed to stimulate the human immune system) and small-molecule product candidates focused on breaking the immune system's tolerance to cancer.

Review the one-year chart of NewLink with the added notations:

NewLink fell off a cliff in March and April.

Most biotech stocks did.

The stock then traded sideways for six months before skyrocketing in October to a high of $42 per share.

Since that high, NewLink has hit the $42 mark as resistance on two other occasions making it a clear resistance level to watch.

In addition, a trendline of support is ready to be monitored. That trend line, combined with the $42 resistance, has NewLink stuck within a common chart pattern known as an ascending triangle.

At some point, NewLink will have to either break the $42 resistance or break support. Whichever way it breaks may lead to a sustained run in that direction.

The stock closed Tuesday at $37.72.