HGSI - Sector: Healthcare---Industry: Biotechnology & Drugs

[kuepper]

Also, what do you guys think of HGSI? Same type of play as before, watch for volume on the breakout.

[Melf Elf]

Also, what do you guys think of HGSI? Same type of play as before, watch for volume on the breakout.

I like it.  Applause for posting the chart and comments.

What I also like about it,  is the up trendline off the April 29 reaction low, after the big rally from March 30 to April 11.  Connect the April 29 low with the June 15 low, and extend it on out.

On the morning of June 24, that up trendline came in at 10.70.  HGSI opened right at 10.70, validating that trendline (it ticked lower by only a penny), then it took off to the upside, putting in a bullish engulfing pattern on triple the volume of the prior day, and on the best volume day since the initial thrust off the March 30 low.  Nice action. 

I'd use a close below that validated April 29 up trendline for a stop.  It's a little lower than your steeper up trendline, but I think that the pattern is deserving of a little more room.

Using the "mini" Ascending Triangle off the April 29 low, a breakout above 11.70 would put Target: 13.48 IN PLAY.  That would be a 15% gain from the breakout.

Figuring the target:

Pattern high (June 1) of 11.70 - 9.92 (April 29 low) = 1.78 points
1.78 points added to the breakout at 11.70 is 1.78 + 11.70 = Target: 13.48

The January 10, 2005 was 13.40, so a return to that high looks about right, on a breakout.  Could go higher, using your larger Ascending Triangle.

[Melf Elf]

Broke out above the Ascending Triangle, printing 11.71.

[maris]

my 3 years experience with HGSI says it will stay in a tight range. Lot of promise but little money

[Melf Elf]

my 3 years experience with HGSI says it will stay in a tight range. Lot of promise but little money

If HGSI can break out of this small Ascending Triangle (Kuepper drew the larger one), I think it can rally 10-15% by mid-September.  HGSI is up 6 days in a row, so it might need to take a rest before it breaks out on a closing basis (if it does).

I especially like how ASTM has acted over the past two months.  It's up  74%.  I'll post that chart in the ASTM file, in case you'd like to look at it.

[kuepper]

Broken... but needs a close above...

[Melf Elf]

Broken... but needs a close above...

There's your close above the Ascending Triangle...and WELL above it.  Applause! 

HGSI closed at 12.00, the high of the day.  Volume could have been better, but there was so some good buying interest late in the day, and at the close. 

1200 shares at 12.00.....2881 shares at 12.00...7347 shares at 12.00...1100 shares at 12.00...they were willing to pay the high tick at the end of the day.  I like that.

13.48 is IN PLAY as long as we remain above the top of the Ascending Triangle.  I think that the target will be MADE by mid-Septermber.  Mid-October, at the latest.  We'll monitor it along the way.

http://ts-lc.sc8.finance.lycos.com/1120593263359?User=demo&Pswd=demo&DataType=GIF&Symbol=NASDAQ:HGSI&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=&Param1=&Param2=&Param3=&FontSize=10&LocaleID=0x0409

[Melf Elf]

HGSI  is up (currently $0.20) this morning on news:

Updated: 08:15 AM EDT
Human Genome: GlaxoSmithKline Exercises Joint Devt Option

ROCKVILLE, Md. -(Dow Jones)- Human Genome Sciences Inc. (HGSI) said GlaxoSmithKline plc (GSK) exercised an option to jointly develop and commercialize Human Genome's rheumatoid arthritis and systemic lupus erythematosus, or SLE, treatment LymphoStat-B.

Under the terms of a June 1996 agreement, the companies will share development costs, as well as sales and marketing expenses. The companies also agreed to share equally in profits of any product commercialized under the agreement.

In April, Human Genome disclosed that results from a phase 2 trial demonstrated that LymphoStat-B was safe, well tolerated, biologically active, and reduced the signs and symptoms of rheumatoid arthritis.

In a press release Thursday, Human Genome noted results of a separate phase 2 clinical trial in patients with SLE are expected in the fall.

Human Genome said it remains confident that GlaxoSmithKline's decision to exercise its option on LymphoStat-B will greatly facilitate its commercialization.

Company Web site: http://www.hgsi.com


http://ts-lc.sc8.finance.lycos.com/1120593263359?User=demo&Pswd=demo&DataType=GIF&Symbol=NASDAQ:HGSI&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=&Param1=&Param2=&Param3=&FontSize=10&LocaleID=0x0409

[Melf Elf]

HGSI closed yesterday at 12.18.  Bank of America started it as a buy this morning.  HGSI is indicated at 12.61 ASK..12.63 BID.   

[Melf Elf]

HGSI closed yesterday at 12.18.  Bank of America started it as a buy this morning.  HGSI is indicated at 12.61 ASK..12.63 BID.   

I bought the 11.71 Ascending Triangle breakout last Friday.  Sold it here at 12.90.  That's a big gap opening this morning that might get filled later.  I took the 10% gain.

http://ts-lc.sc8.finance.lycos.com/1120593263359?User=demo&Pswd=demo&DataType=GIF&Symbol=NASDAQ:HGSI&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=&Param1=&Param2=&Param3=&FontSize=10&LocaleID=0x0409

[Melf Elf]

HGSI printed 13.41 this afternoon, almost at the 13.48 target on my Metastock chart (above) that I expected  by mid-September  I sold it this morning at 12.90, expecting a pullback.

Expect the unexpected 

[Melf Elf]

HGSI, with the double pattern breakout, turned out to be a Stock on Fire.    It blew past the Little Ascending Triangle target of $13.48, and got to within $0.32 of the Big Ascending Triangle target of 14.38 in only four days from the breakout.   

I sold it for 12.90 on some Friday profit-taking, figuring I could get back in on a gap fill (of a breakaway gap!).  Let me see if I can find the "embarrassed" face on the toolbar >> 

[Melf Elf]

Bought back HGSI at 13.40.   Stop is a close or obvious tank below 12.75.  Risk: a loss of 5%

[Melf Elf]

HGSI is up $0.36, to $13.95 on news.  I'd like to see it close today above last week's high of $13.95.  I'd like a close above $14.05, the high of the Symmetrical Triangle in the chart above, even better.


Human Genome wins anthrax treatment supply contract


NEW YORK, Oct 3 (Reuters) - Human Genome Sciences Inc. on Monday said it has won a contract to supply ABthrax, its treatment of anthrax disease, to the U.S. government.

The company said it will supply 10 grams of ABthrax to the U.S. Department of Health and Human Services for testing in the first phase of the contract for about $1.8 million.

The U.S. has the option to place an order within one year for up to 100,000 doses of ABthrax for its Strategic National Stockpile, the company said in a statement.

10/03/05 09:27 ET

   

[Melf Elf]

HGSI is up $0.36, to $13.95 on news.  I'd like to see it close today above last week's high of $13.95.  I'd like a close above $14.05, the high of the Symmetrical Triangle in the chart above, even better.

HGSI closed at 14.06, but the high of the pattern also was 14.06, not 14.05.   

Although yesterday's candle has the look of a Bearish Hangman, I view it as bullish that HGSI went down and filled the opening gap, went into the red by nine cents, then came roaring back to close near the high of the day.

We'll see what the market has to say about that.