After taking off with strong quarterly result with nearly doubled revenues the share price of Exelixis, Inc. (NASDAQ: EXEL, EXEL message board) has been on a strong rally exiting participating and watching investors alike. Even with still outstanding net losses the company's financial position is of a rather good shape and even if it cannot become a double digit stock, there is still a place for some gains to be held.
Current rally was pretty impressive to date already and even recently announced royalty payout obligation haven't added any fuzz to the outstanding accumulation. The price has already passed the major resistance points like 50 and 20 days MA's and the $6.50 level at which the previous rally attempt had stopped. It is possible it will climb all the way to the $7.25 level.
The move is currently sustained by significant volume and managed to turn around most indicators. RSI has moved up significantly and will probably soon hit the overbought level, MACD passed the signal line a day ago.
With the inevitable correction underway however the price is likely to pull down back to $6.50 level after the accumulation is over. Another possibility is to use the 50 or 20 days MA as support. However these speculations will only come in play if no other news is going to fuel the rally. And for the moment, let's enjoy the rise.
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