(Click On Chart To Enlarge)
Since April 16, when VPHM and Wyeth ended HCV-986 Hepatitis C development (Purple #1 on the chart), VPHM has been trading in a channel. The second data point at the top of the channel (Purple #3) was right before earnings, and VPHM subsequently got sent down to the bottom of the channel, and also down near the bottom of the nine month Ascending Triangle (pattern in green, shown in my April 30 blog entry).
At yesterday's close, VPHM is back at the top of the channel, which comes in today, May 16, at 9.231, so a print of 9.24, which also was yesterday's high, is a technical breakout of the channel. We'd want to see 9.25 get printed, to take out yesterday's high.
The 20, 50, 200DMA's are all bunched together here at 9.13, 9.11 and 9.15, respectively, and VPHM closed above all of them yesterday, at 9.18, so that looks good. MACD is poised to cross above its signal line, so the stock looks good to go for a technical rally if it can take out 9.24.
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