Ombow, SGH is breaking out - it broke thru key resistance today. It's been up strong the last two days on increasing volume, and today broke above the November high and was already thru the Jan and Oct highs, so the chart looks promising and today's breakout means the uptrend that started last summer has resumed.
In TA/chart parlance, once a stock breaks above resistance (40-42 band for SGH), that former resistance level now becomes support. After the breakout, the stock can then 1) continue higher right away, or 2) it may re-test the new support level and then continue higher if that test is successful, or 3) can re-test the support level and fail to hold. Trading-wise, you want to stay long the stock unless you get #3.
Switching money from SGMO to SGH sounds like a good move imo - the SGMO chart looks vulnerable after it's huge run. As we know, small biotechs like SGMO rarely have earnings to report, and mainly move on clinical progress, partnership deals, etc, as opposed to quarterly earnings (which they don't have). For SGMO, a lot of the good news is already out, and will now have to wait for the various clinical trials to read out data in the months/years ahead.
One strategy with biotechs is to find out when the data is due for each clinical trial, and you'll often get a runup ahead of that data. One approach is to be long during the runup period and then exit right before the data is released. You miss out on a big upsurge if the data is good, but you get the relatively safe runup period and avoid a meltdown if there's bad data. In stocks with promising long term prospects like SGMO, you can have a long term buy/hold position plus a separate trading position.
