Kite Pharma (KITE): Careful Catching This Falling Knife

I don’t pretend for a second to understand the science behind Kite Pharma (KITE) business, but I do know several smart biotech investors and analysts who are pretty convinced that its technology will prove to be the real deal at least as it pertains to blood cancers. I have never been involved in KITE, but I’ve been watching it for some time to see if/when it may offer a decent entry point. With the stock down almost 50 percent from the highs here is what DeMark indicators point to as “sell exhaustion” levels over the near and intermediate term.

On a daily basis, Kite Pharma has knifed below TDST Level Down at $51.96 as well as the TD Propulsion Exhaustion Down objective at $47.96. Barring a very sharp rally today, the price will complete a Sequential Countdown Sell 13. Note as well that an ongoing TD Buy Setup is on bar 6. This should amount to a rally of sorts over the near-term.

On a weekly basis, the Sell Setup count is only on bar 4 and the TDST Level Down, as well as some other retracement levels, are still far away in the mid $20’s.

To sum it up, the daily chart of KITE suggests that at least in the near-term the stock should find its legs relatively soon. However, based on the weekly chart there will need to be some “repairs” to the DeMark indicators – for example, by way of cancellation of the weekly Buy Setup or completion of a daily Sell Setup – before risks of another 50 percent haircut are meaningfully reduced.

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Kite Pharma (KITE) Daily Stock Chart

kite pharma demark analysis chart with technical support levels May 2015

Kite Pharma (KITE) Weekly Stock Chart

kite pharma weekly demark analysis lower price targets 2015


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The author does not have a position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.