CVTX - CV Therapeutics Incorporated $90.50 +1.14 (+9.38)

CV Therapeutics (CVTX) is part of a new generation of biopharmaceutical companies. CVTX applies advances in molecular biology and genetics to identify and delineate new mechanisms for treating cardiovascular disease. Since mid-August, CTVX has advanced from $50 a share to today's close of $90.50, a new all-time high, which means it might be on the verge of producing its first ever split. A quick glance at the chart shows signs of a strong technical formation as well. With a sharp break above previous highs ($88.31) on good volume of 478 thousand shares traded, the stock could now be gearing for another leg up. Although this is a rather bullish point of view, we feel that heavy buying on the breakout has been a historically good indication of higher prices to come. With this in mind, we'll be looking for lighter resistance levels to initially challenge an advance at today's intra-day high ($93.13) and further up at $95. Look for low-risk entry points above each of these levels if CVTX can continue to advance higher on good volume. On the flip side, we'll look for near-term support to come at the previous high of $88.31, followed by the 10-dma of $82.94. Set stops just above this level at $83 to protect against additional weakness. Consider using the AMEX Pharmaceutical Index (DRG) to guide your entry and exit strategies.

Picked on November 7th @ $90.50 Change since picked 0.00