Kite Pharma has been a bright light in a rather dim biotech sector. Just look at its performance since the gap up in June. It has risen a whopping 80% – even the dog days of summer cannot slow it down. Because this stock has barely had a pullback, it’s been difficult to get on board.
The MACD is a buy signal, and you can see in the money flow (on the bottom of the chart) that Kite has plenty of buyers. Most impressive is its relative strength. The stock continues to perform at a very high level. I like stocks that exhibit this kind of rare energy during a traditionally weak period in the markets. It may take a breather, but this is certainly a good entry point.
