Kite Pharma Breaks Out, Again

With the way the stock market dropped right out of the gate yesterday one would think that all stocks were down, and down big, at one point or another.

To start the morning the Nasdaq Composite (COMP) was down almost 75 points and the benchmark S&P 500 (SPX) was down 25 points.

However, hour-by-hour the market battled its way back.

Even with the entire screen being in the red for most of the day, there were some stocks that had strong up days even without the market reversal.

One of those stocks was Kite Pharma.

The company: Kite Pharma, Inc.

Ticker Symbol: KITE

Sector: Healthcare

Industry: Biotechnology

Kite Pharma operates a clinical-stage biopharmaceutical company that focuses on the development and commercialization of novel cancer immunotherapy products.

Related: These 4 Biotech Stocks Have Been On Fire

The company has collaboration agreement with the Surgery Branch of the National Cancer Institute.

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

As stated above, the stock market was down for most of the day, yet Kite was never in the red. From the get-go the stock started to rally higher.

Midway through the morning Kite pushed through the resistance side of its triangle formation, which at the time was around $47.50, and from there the stock never looked back.

This breakout, which was also on a nice increase in volume, leads to an expectation of higher prices overall for the stock. As comparison, you can see a similar breakout back in September.

The stock closed yesterday at $51.65.

Related: Great News For Biogen, But What’s Next For The Stock?

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.