Heat Biologics Is Starting To Run Away From Support Toward Resistance

Heat Biologics Inc. HTBX shares traded higher Thursday morning after the company announced the launch of its wholly-owned subsidiary Skunkworx Bio Inc. focused on developing a drug discovery paradigm to enable rapid drug deployment.

Heat Biologics Daily Chart Analysis

• Shares have been trading in a sideways channel, and look to have bounced off of support and have started to move higher.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average may act as resistance.
• The $10 has held as resistance in the past and could again if the stock nears this level once again. The $6 level has been holding as a strong support level where the stock struggles to cross below.
• The Relative Strength Index (RSI) has been moving higher and now sits at the 58 level. This means the stock has seen more buyers moving into the stock the past few days.

What’s Next For Heat Biologics?

Bullish traders would like to see the stock start to form higher lows and head toward resistance. If the stock can begin to form higher lows toward resistance, bulls would then like to see the stock cross resistance and be able to consolidate above it.

Bears would like to see the stock fall back down and cross below the $6 support level. If the stock could break below the support level, it is possible that the stock sees a further bearish push.