Tuesday, January 01, 2008

OSIP - OSI Pharma


OSIP, has been forming a BULLISH CONTINUATION PENNANT on the MONTHLY chart shown above. After it’s huge run in 1999 from under $2 a share to around $90, it retraced steeply and formed a DOUBLE BOTTOM into the beginning of 2003. The stock began a sharp rally that after breaking through the MIDPOINT of the formation (see black dashed line) culminated in a retest of the 1999 highs. The stock failed to penetrate that level and embarked on a similar pullback to lower levels. However, it made HIGHER LOWS and held KEY TRENDLINE SUPPORT (see upward sloping solid green line) a few times as it tried to break down through those levels in late 2005. The stock rallied off support but was held in check by the SINGER EMA BAND. After finding SUPPORT again around $30 it rallied above the EMA BAND toward the midpoint of the formation and touched above $50. Looks to be overbought near term, but as the EMA BAND slopes upward, an eventual break through the midpoint could lead to much higher prices…


OSIP has been in a SUSTAINED UPTREND since making a near term low during the August sell-off. Got a few upgrades by major brokerages and been riding trend line support ever since. As is evident from the EQUIVOLUME chart, this stock broke through RESISTANCE with major volume and price movement. That red/green resistance line, just under $38, is where it had been turned back a number of times previously. Once this level was surmounted, a CONSOLIDATION of the big pop ensued and then after a bounce off the (19) upper line in the SINGER EMA BAND it made another move higher. It’s currently pulling back to SUPPORT as the up move was a bit over extended for now. However, a lot of money is moving in and technically this one is shaping up just fine for a move HIGHER. Of course, this is BIOTECH and the cancer drug space is a volatile one.

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