At first glance, Palatin Technologies, Inc. (NYSEMKT:PTN) doesn't look like anything particularly special, nor anything particularly investment-worthy. The longer you study the chart of PTN, however, the clearer it becomes... this stock is on the verge of breaking out, and should be on most traders' watchlists.
The name doesn't necessarily suggest it, but Palatin Technologies is actually a biopharma stock. It's got nothing on the market right now, though the PTN pipeline is relatively full. The big kahuna the company is working on is a female sexual-dysfunction drug, currently ready to begin Phase 3 trials. It's got four more drugs in the works too... well, three more drugs taking aim at four more illnesses. Two are in Phase 1 testing, and two more are in preclinical phases. All in all, it's not a bad pipeline for a company of this size, age, and ilk.
The details are relatively inconsequential to anyone who's been following the Palatin Technologies, Inc. saga so far, however. The reason the story got real interesting real quick has everything to do with the chart today, yet nothing to do with any news. In fact, there hasn't been any news from, or even about, PTN in days. That's what makes today's strength even more compelling.
The weekly chart below tells the story as well as any words could. Since early 2012, Palatin Technologies has been in a sideways mode, ending a downtrend that lasted all the way through 2011. With just a quick look, the stock doesn't look it's done anything other that move sideways. When you lay down the horizontal lines, however, you can see we've actually been chipping away at higher highs and higher lows. Fast forward to today. PTN poked through a ceiling at $0.75, and even took a shot at hurdling $0.80. Indeed, the stock hit a high of $0.83 before pulling back to $0.77. The cat's out of the bag though... the bulls have tipped their hand.
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It's still a little premature to jump on the bandwagon, but it's not too soon to start thinking about it. If Palatin Technologies can make a close above $0.80 - and bear in mind it might take a few days for that move to materialize - that should yank the stock out of a sideways rut and kick-start a new uptrend. After two years of consolidation, the pump is primed.
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