The Canadian Technician

Knight Therapeutics Sees Daylight (GUD.TO)


Knight Therapeutics (GUD.TO) has broken out to new all time highs since its 2014 IPO. Why is this important? Well any investor currently holding the stock is in a profit position. This means they are less likely to sell their winners. 

Secondly, the price action has pushed the SCTR ranking to 92 in November. The MACD looks to be pushing to new 18-month highs which suggests the momentum is better than it has been in a long time. There have been lots of above average green volume candles in the last 3 weeks (Zoombox) suggesting that the interest level is picking up. Also, the relative strength in purple is breaking out to higher highs. That brings in more institutional investors as the stock moves above $10 as well. 

This looks good for Canadian investors. You'll still have to manage the trade, but this is setting up nicely.

Good trading, 
Greg Schnell, CMT, MFTA.

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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