TG Therapeutics, Inc. (TGTX) shares rose more than 10% during Monday's session after the company reported positive preliminary data from its Phase IIB clinical trial evaluating umbralisib in treatment-naive patients with non-Hodgkins lymphoma. The overall response rate was 52%, including eight complete responders, with 86% of treated patients experiencing a reduction in tumor burden.

In March, Cantor Fitzgerald analysts initiated coverage on TG Therapeutics stock with an Overweight rating and a price target of $17.00 per share. The analysts believe that unbralisib and ublituximab have attractive profiles in oncology and autoimmune B-cell diseases. Cantor Fitzgerald also points out that the risk/reward is favorable for TG Therapeutics, as investors have discounted the PI3K commercial potential and the multiple sclerosis potential given the competitive landscape.

TG Therapeutics plans to report final data from the refractory marginal zone lymphoma cohort later this year. If the data is positive, the company expects to file a marketing application seeking accelerated approval by the end of the year.

Technical chart showing the share price performance of TG Therapeutics, Inc. (TGTX)
StockCharts.com

From a technical standpoint, the stock broke out from an ascending triangle chart pattern, the 200-day moving average and pivot point levels near $7.64. The relative strength index (RSI) moved into overbought territory with a reading of 78.20, while the moving average convergence divergence (MACD) remains in a slow bullish uptrend. These indicators suggest that the stock could see some near-term consolidation before extending the move.

Traders should watch for some consolidation between R1 resistance at $9.25 and the pivot point and 200-day moving average near $7.64 over the coming sessions. If the stock breaks out from R1 resistance, traders should watch for a move toward R2 resistance levels at $10.45. If the stock breaks down from key support levels, traders could see a move lower to S1 support at $6.44, but that scenario appears less likely to occur.

The author holds no position in the stock(s) mentioned except through passively managed index funds.