DNDN Dendreon Daily Chart Falling Wedge Oversold Positive Divergence Potential Inverted H&S and Island Reversal Patterns

Keystone is long DNDN as the chart sets up with a textbook falling wedge, oversold stochastics and positive divergence. The positive divergence bounced price a few days ago with the intraday spike to the 5.00 level, but Keystone was sleepin' on the job and did not snag that exit to lock in the profits. The DNDN weekly and daily charts are positively diverged which is very encouraging for this violent biotech stock.  Note how price came back down the last few days to fill the gap left behind on the large spike. Earnings were better than expected creating renewed optimism in this beaten down name.  Since the gap is filled, price has no reason to need to come down lower. The indicators are long and strong, note how the recent spike in price corresponds to higher prints for the indicators so they all want to see a test and perhaps higher high than 5.00 again. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

The chart may develop an inverted H&S pattern as time moves along, head at 3.70-ish, neckline at 5.00, so the upside target if price moves above 5.00 would be 6.30-ish.  Note the huge gap from late July.  This has created the current island in play for three and on-half months. If price moves up to 5.00 and then immediately jumps to 6.20, that would be a textbook island reversal.  Instead, price may simply move upwards and slowly fill the huge 5-6 gap as time moves along.  The congestion zone at 6.2-6.5 is very crowded, so many folks are holding this stock hoping for price to return there.  Projection is for a wildly strong launch higher at any time, right aways from here, or from the purple circle, with a more sustainable up move on tap to 5.00 and over 6.00 for the weeks and months ahead, but, as always, calling bottoms and tops is a dangerous business. If price drops, Keystone will likely continue adding, if another launch occurs, probalby take the money and run, then reenter. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.