Idera Pharmaceuticals Inc (IDRA)

[Citrati]

While it was a big swing, it was actually very reasonable. When you look at last 2 months it is following the same pattern. A little run, followed by a 2-4 day dip and then up or sideways before more up. Since we bounced off the bb mid line and are currently above the 10 day with the ma's still in order above each other the chart favors consolidation or up in keeping with past pattern. One key is whether the 3 day downcrosses the 10 or touches and rises as it did previously and most recently 1 week ago. Todays close will give us another piece to confirmation. I actually like the look of the chart for gaining energy to breakout toward a new high. For that to happen we also need volume to increase and the buy/sell ratio to be more buy dominate. http://stockcharts.com/h-sc/ui?s=IDRA&p=D&yr=0&mn=2&dy=0&id=p91994192461
Potentially, this kind of orderly step step step allows for a more sustained upward trend as opposed to boom and crash type movement. If this follows basing theory we could see several more steps.
Here is an excellent basing run......http://stockcharts.com/h-sc/ui?s=ARWR&p=D&b=5&g=0&id=p12604409024
Note how the interplay of the 3 and 10 day would have kept a person in the stock when others would have exited in fear because they thought at each stage it might be done. Also note how the bb mid line acted as support.

Good luck...What a great stock to be part of. IDRA