Biotechnology and technology stocks are dominating our charts to watch this week, because they are displaying strong technical momentum.

Esperion Therapeutics Inc. ESPR, -1.79% is absolutely rocketing. The clinical-stage biopharma, which is focused on developing drugs that treat cardiovascular disease, popped 29% on Friday in response to good clinical news from Amgen AMGN, -0.39% regarding its own cardiovascular drug. The stock followed through on Monday and then again Tuesday, up $2.48, or 14%, to $20.14 on nearly 3.4 million shares traded. The stock pulled back toward the close, testing the bottom of its rising channel and resting in a tight wedge formation. This formation looks poised to break to the upside, with the next target at the channel top near $22.

Exelixis Inc. EXEL, +4.12% also had a strong session on Tuesday, up 54 cents, or 2.7%, to $20.57, on nearly 6.7 million shares traded. The cancer-drug companys stock needs to get through the rising trendline, near $21, connecting the most recent tops from September, December and January. The challenge beyond that would be the mid-channel line at around $22.75, a break through that could accelerate the stock into the high $20s.

Finisar Corp. FNSR, +2.89% edged above resistance on Tuesday, though closed slightly below it, up 76 cents, or 2.5%, to $30.89, on 2.7 million shares. The provider of optical subsystems for data communications recently traversed from the top of its price channel at around $37 in December to the bottom just above $27 on January 23, before rallying in the last two weeks. The stock did close above its 50-day moving average at $30.77 on Tuesday, and a break above current levels could get it to $33.25 next, followed by $35.50.

KEMET Corp. KEM, +2.99% has been in a steady rising channel since its breakout in November. The stock last week bounced off the channel bottom and rallied after the electronic-capacitor maker beat Wall Streets third-quarter earnings and revenue forecasts. The stock popped on Thursday and Friday, had an inside day on Monday (remaining inside the price range from Friday), and on Tuesday it had another solid day, up 17 cents, or 2.2%, to 7.81, on 652,900 shares traded. The stock looks like its about to take out the $7.90 area, and run up toward the channel top in the $9-$9.75 area.

See Harrys video chart analysis on these and other stocks.

The writer has no investments in the stocks mentioned in this column.

Harry Boxer is the founder of TheTechTrader.com, a live trading room featuring his stock picks, technical market analysis and live chart presentations.

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Harry Boxer's stocks to watch: biotechnology and technology ... - MarketWatch