The story so far for biotech player Pacific Biosciences of California, Inc. (NASDAQ: PACB) is one of up and down with interspersed in the middle a few bouts of peaks and troughs. Right now investors are riding a peak and on Monday, the stock showed why now is a good time to have some confidence in its abilities and penchant for delivering big movement.
On Monday PACB had a real go at breaking the 5.00 barrier when it opened the day’s trading at 4.04 before soaring to a major high of 4.64, not quite the 5.00 but close enough giving where the stock has been over the past few months. PACB dipped to a low of 3.97 on Monday but managed to recover to a close of 4.47 to finish the day up 11%. Now this major close of 11% came with a major volume breakout 3.39M shares. To put the breakout in perspective, PACB has been trading over the past 30 days with an average outing of around 971K – nearly 1M shares per session but obviously not quite strong enough to break through the psychological barrier. Thanks to Monday’s massive breakout PACB seems to be ready to change the paradigm and do something beyond the norm for investors.
At the technical level PACB is also trading well, currently printing a DMA 20 which is up 31% and a DMA 50 that is up 29%. The DMA 200 is slightly off color, being currently down 9%. The good news is that YTD the stock is trending upwards with a figure of +5%. And if PACB does challenge its target price which incidentally is at 5.95 – almost 6.00 – it will certainly cross that 5.00 threshold and deliver some upside to investors.