{"id":6284,"date":"2020-03-18T23:25:38","date_gmt":"2020-03-19T03:25:38","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6284"},"modified":"2022-10-12T12:12:12","modified_gmt":"2022-10-12T16:12:12","slug":"best-coronavirus-stock-picks","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/","title":{"rendered":"3 Hot Biotech Coronavirus Stocks Breaking Out Now"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#A_massive_amount_of_technical_damage_has_been_done_to_top_leading_stock_charts_lately_eliminating_most_low-risk_buying_opportunities_But_today_were_telling_you_about_three_hot_biotech_stocks_breaking_out_to_new_highs%E2%80%93while_also_fighting_against_COVID-19\" >A massive amount of technical damage has\u00a0 been done to top leading stock charts lately, eliminating most low-risk buying opportunities. But today, we&#8217;re telling you about three hot biotech stocks breaking out to new highs&#8211;while also fighting against COVID-19.\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Gilead_Sciences_GILD_Promising_COVID-19_Treatment\" >Gilead Sciences ($GILD) Promising COVID-19 Treatment<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Three-day_performance_NASDAQ_100_-96_loss_GILD_123_gain\" >Three-day performance: NASDAQ 100:\u00a0 -9.6% loss $GILD:\u00a0 +12.3% gain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#The_Technical_Trade_Setup\" >The Technical Trade Setup<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#FujiFilm_Holding_FUJIY_Japanese_Coronavirus_Treatment_Gets_Chinese_Approval\" >FujiFilm Holding ($FUJIY) Japanese Coronavirus Treatment Gets Chinese Approval<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Three-day_performance_NASDAQ_100_-96_loss_FUJIY_37_gain\" >Three-day performance: NASDAQ 100:\u00a0 -9.6% loss $FUJIY:\u00a0 +37% gain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#The_Technical_Trade_Setup-2\" >The Technical Trade Setup<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Moderna_MRNA_First_Coronavirus_Vaccine_now_in_Testing\" >Moderna ($MRNA) First Coronavirus Vaccine now in Testing<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Three-day_performance_NASDAQ_100_-96_loss_MRNA_477_gain\" >Three-day performance: NASDAQ 100:\u00a0 -9.6% loss $MRNA:\u00a0 +47.7% gain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#The_Technical_Trade_Setup-3\" >The Technical Trade Setup<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Speculative_but_Already_Bullish\" >Speculative, but Already Bullish!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/morpheustrading.com\/blog\/best-coronavirus-stock-picks\/#Model_Portfolio_Update_Sideline_Satisfaction\" >Model Portfolio Update: Sideline Satisfaction\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"A_massive_amount_of_technical_damage_has_been_done_to_top_leading_stock_charts_lately_eliminating_most_low-risk_buying_opportunities_But_today_were_telling_you_about_three_hot_biotech_stocks_breaking_out_to_new_highs%E2%80%93while_also_fighting_against_COVID-19\"><\/span>A massive amount of technical damage has\u00a0 been done to top leading stock charts lately, eliminating most low-risk buying opportunities. But today, we&#8217;re telling you about three hot biotech stocks breaking out to new highs&#8211;while also fighting against COVID-19.\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Today, we are excited to show you the technical trade setups of three strong stocks currently ignoring the market and breaking out sharply higher&#8211;even as the major indices are falling!<\/p>\n<p>All three stocks also happen to be the<strong> best players in the current, real-life battle against coronavirus\/COVID-19.<\/strong><\/p>\n<p><em>Continue reading<\/em> to discover how to profit from investing or trading these bullish coronavirus-fighting stocks&#8211;and feel good about the cause while doing so.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gilead_Sciences_GILD_Promising_COVID-19_Treatment\"><\/span>Gilead Sciences ($GILD)<br \/>Promising COVID-19 Treatment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Three-day_performance_NASDAQ_100_-96_loss_GILD_123_gain\"><\/span><em>Three-day performance:<\/em><br \/>NASDAQ 100:\u00a0 -9.6% loss<br \/>$GILD:\u00a0 +12.3% gain<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Outperforming the NASDAQ 100 by more than 20% over the past three days, Gilead ($GILD) is an American biotech company with <a href=\"https:\/\/www.cnbc.com\/2019\/07\/31\/gilead-results-beat-street-estimates-as-demand-grows-for-hiv-drug.html\" target=\"_blank\" rel=\"noopener noreferrer\">22 billion<\/a> per year in sales.\u00a0<\/p>\n<p>Their experimental drug named remdesivir showed promising results in the recovery of 14 Americans hospitalized in Japan for the treatment of COVID-19. Remdesivir also started <a href=\"https:\/\/www.gilead.com\/news-and-press\/press-room\/press-releases\/2020\/2\/gilead-sciences-initiates-two-phase-3-studies-of-investigational-antiviral-remdesivir-for-the-treatment-of-covid-19\" target=\"_blank\" rel=\"noopener noreferrer\">Phase III trials<\/a> three weeks ago and may currently be our <a href=\"https:\/\/www.washingtonpost.com\/business\/economy\/the-best-hope-for-coronavirus-treatment-is-an-experimental-drug-that-fizzled-against-ebola\/2020\/03\/10\/8a9e8cd4-5fe8-11ea-b29b-9db42f7803a7_story.html\" target=\"_blank\" rel=\"noopener noreferrer\">best hope<\/a> against fighting coronavirus.\u00a0<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Technical_Trade_Setup\"><\/span>The Technical Trade Setup<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Initial stock reaction to this news was volatile and non-committal, but sentiment has sharply improved in recent days.\u00a0<\/p>\n<p>Now, a bullish monthly chart has positioned $GILD for a convincing breakout to new 52-week highs.<\/p>\n<p>On the monthly chart below, notice how $GILD has sharply broken out above a long-term downtrend line that was in place since the highs of 2015:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/200318GILDM.png\" alt=\"$GILD WEEKLY \" title=\"\"><\/p>\n<p>On the chart above, notice that volume has also surged to roughly double the average daily levels, hinting at stealth institutional accumulation by the &#8220;smart money.&#8221;<\/p>\n<p>Zooming in to the shorter-term hourly $GILD chart (below), notice the bullish <a href=\"https:\/\/www.investopedia.com\/terms\/d\/doublebottom.asp\" target=\"_blank\" rel=\"noopener noreferrer\">double bottom<\/a> pattern, which looks like a &#8220;W.&#8221;<\/p>\n<p>With the double bottom pattern, the\u00a0 second low should &#8220;undercut&#8221; the first low, followed by a strong price reversal higher.<\/p>\n<p>That&#8217;s exactly how it has played out on the hourly chart of $GILD lately:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/200318GILD60.png\" alt=\"$GILD 60 MIN \" title=\"\"><\/p>\n<p>As annotated on the chart, $GILD could be bought on a breakout above the $80 area\u00a0<em>OR<\/em> on a pullback to the 20-EMA on the hourly chart (beige line).<\/p>\n<p>When a strong stock breaks out, the first pullback to touch the 20-EMA often presents a low-risk buy entry point if the initial breakout entry was missed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FujiFilm_Holding_FUJIY_Japanese_Coronavirus_Treatment_Gets_Chinese_Approval\"><\/span>FujiFilm Holding ($FUJIY)<br \/>Japanese Coronavirus Treatment Gets Chinese Approval<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Three-day_performance_NASDAQ_100_-96_loss_FUJIY_37_gain\"><\/span><em>Three-day performance:<\/em><br \/>NASDAQ 100:\u00a0 -9.6% loss<br \/>$FUJIY:\u00a0 +37% gain<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Gilead may have the best possible COVID-19 treatment in America, but it&#8217;s a different story on the other side of the world.<\/p>\n<p>Toyama Chemical, a subsidiary of Japanese conglomerate FujiFilm \u200b($FUJIY), has been having consistent success with fighting coronavirus with a drug named <a href=\"https:\/\/nypost.com\/2020\/03\/18\/japanese-flu-drug-clearly-effective-in-treating-coronavirus-officials-say\/\" target=\"_blank\" rel=\"noopener noreferrer\">favipiravir<\/a>.<\/p>\n<p>According to public broadcaster NHK, Covid-19 patients who were given the medicine in China showed negative test results about four days after becoming positive (compared with a median of 11 days for those who were not treated with favipiravir).<\/p>\n<p>Now that <a href=\"https:\/\/www.theguardian.com\/world\/2020\/mar\/18\/japanese-flu-drug-clearly-effective-in-treating-coronavirus-says-china\" target=\"_blank\" rel=\"noopener noreferrer\">China has given its seal of approval<\/a> on the encouraging coronavirus drug, it&#8217;s quite possible that other regions around the world may start taking notice and be looking to buy as well.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Technical_Trade_Setup-2\"><\/span>The Technical Trade Setup<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>As a Japanese company, FujiFilm Holdings is traded as an <a href=\"https:\/\/en.wikipedia.org\/wiki\/American_depositary_receipt\" target=\"_blank\" rel=\"noopener noreferrer\">ADR<\/a> in the US stock market (ticker $FUJIY).<\/p>\n<p>On the long-term monthly chart below, notice that $FUJIY has formed an extremely bullish reversal candlestick after breaking out to a fresh all-time high:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/200318FUJIM.png\" alt=\"$FUJIY MONTHLY \" title=\"\"><\/p>\n<p>Drilling down to the hourly chart, we can see that $FUJIY may be a bit too extended\u200b for a low-risk entry at its current level.\u00a0<\/p>\n<p>However, we once again could look for a buy entry on a pullback to the 20-MA.\u00a0<\/p>\n<p>If the stock remains strong in the near-term and does not pull back, then look for a period of consolidation to allow the rising 20-MA to catch up after a correction by time:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/200318FUJI60.png\" alt=\"$FUJIY HOURLY \" title=\"\"><\/p>\n<p>Notice the huge relative surge of volume that has come into $FUJIY over the past week. Volume spikes like this are the fuel that can keep propelling the stock higher. Keep an eye on its volume to help predict just how high this coronavirus fighter may rally.<\/p>\n<p>With FujiFilm Holdings trading at all-time highs, there is no technical resistance overhead. Therefore, pullbacks to areas of support in $FUJIY should remain buyable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Moderna_MRNA_First_Coronavirus_Vaccine_now_in_Testing\"><\/span>Moderna ($MRNA)<br \/>First Coronavirus Vaccine now in Testing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Three-day_performance_NASDAQ_100_-96_loss_MRNA_477_gain\"><\/span><em>Three-day performance:<\/em><br \/>NASDAQ 100:\u00a0 -9.6% loss<br \/>$MRNA:\u00a0 +47.7% gain<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Unlike $GILD and $FUJIY that are rocketing higher due to their effective COVID-19 treatments, Moderna ($MRNA) stock is suddenly looking bullish on the heels of its new <a href=\"https:\/\/www.fool.com\/investing\/2020\/03\/17\/why-is-everyone-talking-about-moderna.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">coronavirus vaccine phase 1 clinical trial<\/a>.<\/p>\n<p>Human testing of the experimental mRNA COVID-19 vaccine began on March 16. In the clinical trial, 45 healthy adults are each scheduled to receive two vaccine doses, spaced 28 days apart.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Technical_Trade_Setup-3\"><\/span>The Technical Trade Setup<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The weekly chart of $MRNA below shows the huge pick up in volume, as the stock moved off the 10 and 40-week moving averages a few weeks ago.<\/p>\n<p>The past few weeks were volatile, but the price action has tightened up and become <em>much<\/em> more bullish over the past few days.<\/p>\n<p>Aided by high volatility, $MRNA has zoomed a whopping +47.7% higher while the NASDAQ tumbled nearly -10%.<\/p>\n<p>$MRNA convincingly broke out above resistance near the $30 level this week, on much greater than average volume. Check it out:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/200318MRNAW.png\" alt=\"$MRNA WEEKLY \" title=\"\"><\/p>\n<p>On the shorter-term hourly chart, we see tightening price action that could soon lead to an explosive breakout to new highs:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/200318MRNA60.png\" alt=\"$MRNA 60 MIN \" title=\"\"><\/p>\n<p>As with the $GILD buy setup, $MRNA can be bought on a breakout above resistance (above $33)\u00a0<em>OR<\/em> a pullback to near the 20-MA on the hourly chart.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Speculative_but_Already_Bullish\"><\/span>Speculative, but Already Bullish!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>These three coronavirus stocks may not meet the strict criteria for our typical <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Wagner Daily<\/em><\/a><\/strong> swing trading setups, but each stock clearly has a bullish chart pattern that is poised for further upside<em>&#8211;despite incredibly persistent weakness in the market.<\/em><\/p>\n<p>Although these stocks could be considered speculative, it&#8217;s important to realize they also have solid technical patterns supporting them.<\/p>\n<p>In other words, <em>we are not bottom fishing in a weak market<\/em> and just hoping for lucky news.<\/p>\n<p>Nevertheless, it may be wise to reduce your share size while trading these stocks that are more speculative in nature than our usual swing trade setups.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Model_Portfolio_Update_Sideline_Satisfaction\"><\/span>Model Portfolio Update: Sideline Satisfaction\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Stocks have plunged much lower since our most recent blog post, but it has not hurt our <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener noreferrer\">newsletter<\/a><\/strong> subscribers one bit.<\/p>\n<p>That&#8217;s because the <em>Wagner Daily&#8217;s<\/em> model portfolio remains <em>100% in cash, as it has been since late February.<\/em><\/p>\n<p>Being in cash may be &#8220;boring,&#8221; but it&#8217;s fantastic to be protecting previous gains while the main stock market indexes have been getting crushed.<\/p>\n<p>Lacking any bullish follow-through days that would have given us a new &#8220;buy&#8221; signal, our market timing system continues to keep subscribers safely on the sidelines.<\/p>\n<p>As always, <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener noreferrer\"><em><strong>Wagner Daily<\/strong><\/em><\/a> subscribers will be immediately notified of trade details when we jump back into the market again.<\/p>\n<p><em>What is your favorite coronavirus stock pick? Drop us a comment below.<\/em><\/p>\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>A massive amount of technical damage has\u00a0 been done to top leading stock charts lately, eliminating most low-risk buying opportunities. But today, we&#8217;re telling you about three hot biotech stocks breaking out to new highs&#8211;while also fighting against COVID-19.\u00a0 Today, we are excited to show you the technical trade setups of three strong stocks currently [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-6284","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=6284"}],"version-history":[{"count":18,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6284\/revisions"}],"predecessor-version":[{"id":15194,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6284\/revisions\/15194"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=6284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=6284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=6284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}