Heat Biologics Inc (Nasdaq:Htbx) became technically very interesting after its bounce yesterday.
Shares in the company, which is developing therapies that can get a patient’s own immune system to fight cancer, closed at $1.30 yesterday, up 5.69%.
Nothing to write home about, considering the absence of any announcement or news that could account for the rise.
Yet, the stock is worth watching for the subtle change in its technical strength over the last couple of weeks.
The stock appears to have stabilized after its decline from a high of $2.07 touched on August 9, meeting buying interest any time it falls below the $1.16 level.
Is Heat Biologics Inc (Nasdaq:HTBX) a technical sleeper?
The gains over the last three sessions have led the stock to penetrate upwards its 200-day moving average, with which it had been flirting for a while.
Short term momentum has picked up because the stock has also penetrated its 20-day moving average, and the RSI has been moving up from an oversold zone.
Also to note is that the stock has moved up and through the upper falling trendline of a wedge pattern.
Bullishness is implied when the price breaks through a confluence of so many lines. Of course, resistance is presented by the 50-day average at the $1.38 level.
If Heat Biologics Inc (Nasdaq:Htbx) rises past that level, it may be in breakout mode.hat’s cooking in Heat Biologics Inc (Nasdaq:HTBX)?
It’s interesting that the company will announce results from a number of drug trials this quarter.
The company said earlier this month that it is on track to report topline data this quarter from its Phase 2 trials evaluating HS-410 and HS-110 for the treatment of non-muscle invasive bladder cancer (NMIBC) and non-small cell lung cancer (NSCLC), respectively, as well as its Phase 1b trial evaluating HS-110 in combination with Bristol-Myers Squibb’s anti-PD-1 checkpoint inhibitor, Opdivo, for the treatment of NSCLC.
There may be glad tidings for shareholders as hinted by Jeff Wolf, Founder and CEO: “We are encouraged by our early data in bladder cancer that suggests we are activating a robust antigen-specific immune response and our data in lung cancer that suggest HS-110 may improve response rates for patients with ‘cold tumors’ who typically have lower response rates to checkpoint inhibitor monotherapy.”
A recent exercise of warrants also juiced up the cash holdings of the company which it utilized to pay down $1.5 million of a commercial loan. “We continue to strengthen our balance sheet and carefully manage expenses while pursuing an aggressive clinical program that will generate four important data readouts this quarter,” Wolf said.