Dyax Corp. (NASDAQ: DYAX)
Dyax Corp climbed almost 19% yesterday on news that a rebalancing of the NYSE Arca Biotechnology Index (NYSE: BTK) would add 3,776,600 shares of DYAX to the index. The company’s share price has also recently been bolstered by an analyst upgrade and persistent rumors that DYAX is an attractive takeover candidate. Yahoo Finance
DYAX a biopharmaceutical company engaged in the research, development, and commercialization or rare disease treatments is schedule to report fiscal 2015, 3rd quarter financial results on Wednesday, October 28, 2015.
DYAX Technical Analysis
On yesterday’s news DYAX stock opened the session at $23.49 and finished the day at $28.01. Price action stood out in that after the first midday breakout thrust, DYAX found support and resistance at the whole and half dollar levels from $26 thru $28 (see chart). This clean price action indicates bullish program buying.
DYAX has traded in a down channel since it hit yearly highs of $30.55 on April 8. Yesterday it made a strong upside move thru that channel on almost 4 times average daily volume. On the long side a move thru $28.50 is bullish and a volume move thru $28.80 opens the door for a test of YTD highs of $30.55. Any up move in the face of IBB weakness is bullish. For a short, any breach of the aforementioned levels likely gets price to the next level. For example a breach of $28 could lead to $27.50 and so on. A fail and continuation thru the prior down trend line near $25.40 negates yesterday’s bullish move.
Keep in mind that after 4 years of being the best performing sector in the markets, biotech has been in correction mode since mid July and volatility remains elevated. The sector was strong today with IBB closing above its 9 EMA for the first time in ten trading days. If the sector remains volatile or weak, I would expect the same from DYAX. Conversely if Biotech is trending to the upside DYAX should follow.
Individual indicators and data points are not enough to make a trade. You need a few confirming indicators to execute a trade. Plan your trade, and trade your plan.
About DYAX Corp
Dyax Corp is a biopharmaceutical company. The Company is focused on Hereditary Angioedema (HAE) and other Plasma-Kallikrein-Mediated (PKM) Disorders, and licensing and funded research portfolio. The Company develops and commercializes treatments for hereditary angioedema. The Company discovered and developed KALBITOR, a plasma kallikrein inhibitor, and is selling it in the United States for the treatment of acute attacks of HAE. Additionally, it discovered and is developing DX-2930, a human monoclonal antibody inhibitor of plasma kallikrein. It also developed a biomarker assay that detects the activation of plasma kallikrein in patient blood. The Company has a portfolio of product candidates being developed by licensees using its phage display technology. This portfolio includes one approved product, CYRAMZA (ramucirumab), which is marketed by Eli Lilly and Company (Lilly), and multiple product candidates in various stages of clinical development. Google Finance