Dendreon Corporation (NASDAQ: DNDN) seems to be on its way to recovery from the recent drop. The stock price has been falling on low volume for about 2 weeks now. I know I thought that $15 was a great buying opportunity, but I still think it is time to buy. A quick look at the daily chart of DNDN shows us that:
- The stock price has been making higher lows since January.
- The volume of transactions has been increasing substantially over the last 2 months.
- The 50 daily moving average is turning up for the first time since July 2010
- DNDN saw its short interest decrease by seven percent to 32,321,800 from 34,768,300.
- My expectation is for DNDN to rise back up to 15.21-16$ and then break out above 17.05
- This scenario would be cancelled if the price falls below 12
There is a resistance level that needs to be crossed to give rise to the next leg up. The buy trigger is at $14.66. If we can cross this level next week, the stock should continue its move up. During the day I tweet many times to my readers. I encourage everybody to subscribe AC Investor Blog twitter , so you can receive my trade ideas and stock news in real time. Stay tuned !!