NuPathe is (Almost) Your Next Best Bet (PATH)

It's not hard to find an attractive stock with the market is rallying - the rising tide lifts all stocks. The real test for a ticker is when the whole market is tanking (like Thursday), and a stock manages to make gains against the grain. Enter NuPathe Inc. (NASDAQ:PATH). This little biopharma stock is up 3% today, which isn't much, but given the market it's a virtual windfall. It's the reason for the rally - or lack of a reason to be more specific - that makes PATH such a compelling buy here.

Don't sweat it if you've never heard of PATH; most people haven't. The company is the maker of a medical product called Zecuity, which is (in simplest terms) a patch that delivers a migraine treatment transdermally. NuPathe has a couple of other things in the pipeline, but neither is anywhere near being marketable.

Here's the thing ... none of those products or news linked to them are behind the current rally. At least not yet. This chart says something is brewing though; the market always has something of a sixth sense about these things, and NuPathe is no exception. Indeed, the bullish undertones of the chart of PATH are the big story worth a closer look here.

There are a few big buying cues here. One of them is the string of higher lows. The other is the fact that PATH hit a higher high today. Of course, the fact that shares took a big hit in October and are ripe for a rebound doesn't hurt. Throw in the fact that the buying volume is starting grow, and it's hard to argue that the NuPathe Inc. tide hasn't fully turned already.

The clincher here has yet to materialize. That's going to be a close above $1.81, which was not only where NuPathe peaked for several days in late October, but also where the key 20-day moving average line is now. PATH shares traded above that mark briefly on Thursday, but pulled back to a close of $1.77. The bulls have tipped their hand though - the cat's out of the bag about the interest in the stock.

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