This Biotech Stock Is Ready To Run

Biotech stocks surged nicely yesterday with the iShares Biotechnology ETF rallying over 2 percent.

For the most part, biotech stocks have performed very well over the last month, and even the last year.

That performance can be seen quite well with names such as Gilead Sciences GILD, Illumina ILMN and Vertex Pharmaceuticals VRTX all having hit new highs within the last 30 days.

However, not all biotech stocks have been soaring.

Some have taken their time getting off the ground. For example, Incyte Corporation INCY had been trading sideways for around 6 months before finally skyrocketing to new highs just recently.

Like Incyte, another biotech name that appears to be ready to get moving is Celldex.

The company: Celldex Therapeutics, Inc.

Ticker Symbol: CLDX

Sector: Healthcare

Industry: Biotechnology

Celldex focuses on the development, manufacture, and commercialization of novel therapeutics for human health care.

Related:2 Skyrocketing Biotech Stocks In A Stalling Market

The company’s lead drug candidates include rindopepimut, a targeted immunotherapeutic, and Glembatumumab vedotin, which is a targeted antibody-drug in a randomized study for the treatment of triple negative breast cancer.

Review the 1-year chart of Celldex with the added notations:

After enduring a similar fall that most biotech stocks suffered back in April and May, Celldex started its sideways trading range.

From June through the end of October the stock bounced between a clear support at $12 and a topside resistance at $18. At some point Celldex was going to have to break one of those two levels.

Earlier this week the stock broke through its resistance of $18.

Knowing that stocks breaking through key resistances commonly move higher, investors and traders might want to take a look at Celldex for a possible investment.

The stock closed yesterday at $17.72.

Related:1 Biotech Beast Worth Tracking

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.