For the third time in a little more than three months I find myself singing the praises of Palatin Technologies, Inc. (NYSEMKT:PTN), suggesting it is a "buy" ... at least to nimble and cautious speculators. It's a rarity, as I tend not to like beating a dead horse (personal preference). PTN, however, is one of those rare cases where the message deserves to be delivered again, as there's still a lot of opportunity left for newcomers to tap into.
As a reminder, Palatin Technologies is a biotechnology company. Its lead product is called Bremelanotide, currently in Phase 3 trials. Bremelanotide is a treatment for female sexual dysfunction. It's got four other trials on the table too, three of which will only proceed if PTN can get a partner or licensee. The fourth one, for obesity and diabetes, is only in preclinical stages right now, though it looks like Palatin is going to proceed with its development with or without a partner.
The details of the company's pipeline still aren't the important part of the story right now, however. Rather, the aspect worth a closer look - and the reason I pointed it out in the first place - is the technical momentum that started to appear back in December when I first pointed PTN out as a buy-worthy idea, and the degree to which that technical momentum had developed by mid-February when I looked at Palatin Technologies again. The reason I'm looking at PTN once again today is simply to point out how that momentum has even further developed.
The daily chart of PTN below tells part of the story about how well this momentum has developed. By punching through the ceiling at $0.80 we talked about in December, the stock was allowed to move higher - albeit erratically - in the meantime. More recently (earlier this month), the 50-day moving average line (purple) halted a pullback by providing support for Palatin Technologies shares, spurring another leap forward. And, though it's been uneven, there's been a growing degree of bullish volume ever since the January break past $0.80.
To really put this breakout effort from Palatin in perspective, however, one has to take a step back and look at a weekly chart. It's here we're reminded that PTN spent almost all of 2012 and 2013 in consolidation mode. Although the company may not have seemed to make any meaningful progress during that time, it was forging ahead, getting into position to dole out a lot of compelling news now. The market, with a lot of pent-up trading still to unleash, is getting excited about all that Palatin Technologies did in 2012 and 2013, making up for lost time.
It may be a little unwise to wade into PTN now, as it's overbought thanks to today's surge [the time to get in was the first or second time I talked about it]. But, with a decent pullback, Palatin may be a worthy trade. The bigger undertow is bullish, and the stock's been turning bullish pretty quickly after dips.
For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.
No comments:
Post a Comment