A Thin Stock for a Thin Market

• Posted by Greg Harmon
• on December 26th, 2013

A small biotech that develops treatments for resistance cancer, OncoGenex Pharmaceuticals, $OCXI, is starting to make waves. It has had a horrible history. From a high of over $840 in 1997 this stock plummeted into 1998 before basing in a tightening range for 10 years. Following the basing it gapped lower again to about $10 or zero if you had bought it at the highs. It has had a slow drift lower this year until a increased volume bottom in November. Now it is breaking a downtrending resistance line as it bases in a symmetrical triangle, near a break out. A move over 8.55 has resistance at

8.66, but more importantly triggers a target of 9.45. This would also trigger a Measured Move higher to 10. The Relative Strength Index (RSI) is bullish and the MACD is positive, both supporting the move higher. As a thinly traded stock it could do this in a day if it breaks and enough momentum traders are following it. At either target it becomes more interesting as the downtrend has been broken decidedly. Keep an eye on it.

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