IDEC Pharma. - IDPH - close: 29.90 change: +0.44 stop: 32.82
Today's 2.5% NASDAQ rally gave IDPH bulls a ray of hope, one day after the stock fell below critical support at $30.00. Those hopes were challenged by Biogen, who restated their 2002 earnings after settling a $55 million lawsuit with Berlex Labs. This cast a bearish pallor over the entire biotech sector, resulting in only a fractional gain for the BTK.X biotech index. IDPH also showed relative weakness with a 1.4% gain. Shares closed below $30.00 after mustering a few brief intraday jaunts above that level. This play will be in good shape if $30.00 continues to act as resistance. We're also pleased with the way shares failed to respond to AG Edwards' "Hold" rating that was initiated this morning. We doubt many investors will want to hold on to IDEC if it continues to underperform the market. Going ahead, we'll be watching for shares to roll over and move under the relative low of $28.38. Cautious traders can maintain a stop at $31.35, above Tuesday's high.