bluebird bio Inc (NASDAQ:BLUE) broke out to a new 52-week high yesterday, accompanied by a good volume suggesting higher levels.
This biotech stock has been in a nice uptrend for the last seven months and technically looks very strong with both 50-day and 200-day exponential moving averages going up, while %K line is on top of %D line and MACD rising. BLUE is now on the overbought level, so this means a possible correction is near.
This potential pullback may give us a chance to jump in on the stock when it moves lower. Watchout for support at $100, as long as the stock does not go below this level on a possible correction phase, we are still safe. From a technical standpoint, this is a stock to keep an eye on for awhile.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.