This Drug Stock is a Steal

EXEL stock could be a bargain at current levels, if past is prologue

Jan 19, 2018 at 2:48 PM
facebook X logo linkedin

The shares of biotech Exelixis, Inc. (NASDAQ:EXEL) -- which makes Cabometyx -- have been in a channel of higher highs and lows since early 2016, gaining 55% over the past year. Since its most recent test of the $32-$32.50 range -- home to its Oct. 16 record high -- earlier this month, EXEL stock has given back about 13%, and was last seen 0.3% lower to trade at $27.80. However, the drug stock could be a steal at current levels, if recent history is any indicator.

Specifically, Exelixis stock recently came within one standard deviation of its 160-day moving average, after a lengthy stretch above this trendline. Historically, pullbacks to this trendline have been buying opportunities for EXEL bulls. After the last four signals, EXEL shares were higher one month later 75% of the time, averaging a gain of 11.61%. A similar rally from current levels would place the security around $31 -- within striking distance of new-high territory.

EXEL stock chart

Should the equity resume its quest for record highs, a continued short squeeze could propel EXEL even higher. Short interest declined 7.1% during the most recent reporting period, but these bearish bets still account for nearly 17 million Exelixis shares. At the stock's average daily trading volume, it would take more than six sessions to repurchase these pessimistic positions -- plenty of fuel for additional gains.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI