Momenta Pharmaceuticals, $MNTA, is emerging from a huge cup and handle pattern.
This is a stock that has been on my radar for the last few months. There are a few things that I really like about this chart. First, big bases offer the potential for strong, multi-month moves higher. It's almost like the stock has been waiting and building and all that built up tension is about to be released.
Second, I really like the volume displayed in the chart. There was a strong move higher in January on massive volume. As $MNTA consolidated over the next four months, it did so on relatively calm volume, indicating a reluctance by many owners to sell. This was followed by huge volume coming in as $MNTA broke out above $35.
Finally, I like the behavior of this stock in the first half of 2020. It never lost its 40-week moving average in March as the S&P 500 declined far below it's 40-week moving average. The calm price action prior to this week is also a plus in my book.
Full Disclosure: Momenta Pharmaceuticals is a stock I currently own.
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