Dendreon (DNDN)

Company

"Dendreon Corporation is a biotechnology company whose mission is to target cancer and transform lives through the development of innovative cancer treatments. In addition to its immunotherapies in clinical and preclinical development for a variety of cancers, Dendreon's product pipeline also includes monoclonal antibody and small molecule product candidates. Dendreon has research and development alliances with Genentech, Inc., Abgenix, Inc. and Dyax Corp." (company website)

DNDN stock chart

Buy

22-Jun-05. Dendreon has been trying to reverse a downtrend since last November (see sidebar). It seems to be on the verge of breaking the trendline. I hope I'm right.

  • Price momentum (PPO) — gaining
  • Trend (ADX) — strengthening (albeit below the 20 threshhold) and buying pressure (+DI) is picking up
  • Money flow (CMF) — improving quickly, now positive
  • Relative strength (RSI) — begun to gather strength during past two weeks

Sell

profit Bottom line
+8%

18-Jul-05. My working assumption has been that DNDN has reversed the long downtrend and is starting a climb upward. But— the price has leveled off and there are some worrisome signs in the chart. Foremost, average daily volume has been declining steadily, and that's seldom a good sign. Buying pressure (+DI), relative strength (RSI), and cash flow (CMF) are all weakening.

Since I wanted to generate some cash anyway, I'm following the principle of culling the positions with the iffy-est looking charts.

DNDN stock chart
DNDN 1-year chart