Is Sangamo The Next Biotech Stock To Break Out?

Many biotech stocks have been breaking out over the past two months.

Newlink Genetics Corp NLNK and Incyte Corporation INCY both skyrocketed in October.

After that, stocks of Ariad Pharmaceuticals, Inc. ARIA and Celldex Therapeutics, Inc. CLDX both had nice, quick pops last month.

Then there was Kite Pharma Inc’s KITE huge jump earlier this month.

So, Who’s Next?

Ticker Symbol: SGMO

Sector: Healthcare

Industry: Biotechnology

Sangamo focuses on the research, development and commercialization of zinc finger DNA-binding proteins for gene regulation and modification.

Related Link: Kite Pharma Breaks Out, Again

The company has collaboration and license agreements with Shire International GmbH and Biogen Idec Inc.

Below is a 1-year chart of Sangamo with the added notations:

Sangamo can certainly go on some wild rides.

• The stock popped big back in December and January, but also fell off a cliff in March and April.
• Sangamo had a nice rally in June, but then gave it all back in July. So, the stock’s ability to move is not in question.

All those moves being said, imagine if Sangamo could break through the key resistance level of $17. Compare the similar breakouts of the stocks listed above to get an idea.

The stock closed yesterday, December 16, at $14.33.

Related Link:These 4 Biotech Stocks Have Been On Fire

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