United Therapeutics Rallied. Now It Pulled Back

NASDAQ:UTHR   United Therapeutics Corporation
United Therapeutics spent more than a year consolidating around its 2015 highs. Now the biotech may be attempting a breakout.

Notice the surge to new all-time highs late last month. The rally followed news that the Food & Drug Administration approved its Tyvaso DPI hypertension drug for two applications. (There were worries of a narrower approval.)

UTHR paused for about three weeks and pulled back toward $215. That level is potentially important because it’s near the previous highs last December and January. Has old resistance become new support?

Prices have also held the 21-day exponential moving average , which could mean an uptrend has begun.

Third, the 50-day simple moving average ( SMA ) rose above the 200-day SMA on June 10: a “Golden Cross.”

Next, stochastics have dipped toward oversold territory.

Finally, the macro backdrop may favor UTHR because biotechs are non-cyclical at a time when Jerome Powell is slamming the brakes on the business cycle. They’ve stabilized in the last month – even as the broader market tanked.

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