A lot of stocks in the Nasdaq iShares Biotechnology Fund have been under pressure lately. I almost feel as if the sector has been pricing in a Hillary Clinton victory. I am not here to discuss politics though. I discuss stock charts and make bad jokes with really dry humor. Well, at least I do a better job with the charts than the jokes. But what is no laughing matter is the price surge that Tesaro (TSRO) has seen over the last 6 months.

Since I’ve now analyzed Tesaro’s charts a few times and had no idea what they did, I figured it was time to read up on them. I found this article on Investors Business Daily. Looks like an ovarian cancer drug is one of the main drugs in their pipeline.

Tesaro’s Ovarian Cancer Drug Has Edge Vs. AstraZeneca’s: Analyst

Tesaro (TSRO)

So now that I have a little background on TSRO, I feel a little more informed when I look at its charts. This next chart is a 3 year weekly candlestick chart for TSRO. I like weekly charts when analyzing a trend that is currently in progress. And oh boy, is TSRO’s trend underway. This was a stock call that I nailed back when TSRO’s share price was around the $36 – $38 price area and I calculated a $100 price target for it. TSRO’s share price has now surpassed that $100 mark.

Analyzing Overhead Price Resistance Areas for Tesaro (TSRO)

The momentum is starting to slow a little. See how TSRO closes out this week’s candlestick pattern. A close of anything lower than $115 is considered bearish because of the potential candlestick pattern it will develop. A close around the $115 mark to end the week will create a Doji candlestick pattern. A close at $114 or below will create a Bearish Engulfing candlestick pattern.

If TSRO’s share price can close out the week closer to the $120 area though, that would be more bullish. A $120 close or above for TSRO’s share price and I would most likely stay long until closer to the 261.8% Target Line from the Fibonacci Extension Tool, or at least until another bearish reversal signal is spotted.

Tesaro (TSRO) – Repurchasing Shares

Any shares sold should be repurchased in the Rising Window candlestick pattern’s support area

A Support Area Created by a Rising Window Candlestick Pattern

Tesaro (TSRO) – Summary

Remember that if you are trying to trade and flip shares on a hot trending stock, do not sell entirely out of a position. Sell some shares, not all your shares, in case the market catches you out of position and starts to run again. At least that way you still have some skin in the game until the more bearish signal develops. Sometimes the best moves are no moves at all on hot stocks.

So far today, TSRO after gapping down has seen some nice price action moving back up. Now let’s see how it closes out the week. I will post a chart on TSRO after the week ends in the Idea Chamber. Stay tuned.