ITUS stock climbs after news of new patent

Itus Corporation, a company that develops, aquires, and licenses emerging technologies in the areas of biotechnology, is in the stages of developing technology that can detect cancer at an earlier rate through a blood test. The company saw its stock jump by 85 percent upon releasing news of the patent issuance of the new technology, this was on Sept. 18.

The biotechnology industry has grown by 7 percent in the past three months, and in an expanding economy, I would think that this industry has room to continue growing.

The S&P continues to grow, gaining 4 points (it is to note that this move was on lower than average volume ) at the time of writing this. 90 percent of the market saw new highs today, showing good sentiment. However, the possibility of interest rate hikes still looms over the market, as well as climbing oil prices and President Trumps proposed tax reforms.

ITUS has rebounded off support at the 2.50 level and could hit a target of 5.00. It currently sits at 3.33, 51 percent from its 52-week high. Volume is increasing and RSI is showing bullish strength.

I am long, having entered at 2.75. Risk is controlled to 3 percent of my account, should the trade go the other way. With earnings coming out, a good report could send the stock up to its target very quickly.
There is still a chance to jump in at 3.50 or better.

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