CRSP - bottoming in process?CRSP has been consolidating in what is potentially an inverted H&S pattern since hititng inot low on 12 May. Despite the overall market being extremely weak this week, CRSP dipped and quickly recovered forming a potentially bullish candle for this week.
If CRSP can have a weekly close above 68 then there could be grounds for more optimism. However, a weekly close above 74 (a longer term resistence and also the 200 days moving average) could up it's odds of sustaining a longer term uptrend.
We aren't at these levels yet so I'm just keeping a watch now.
p/s with overall US market being rather bearish right now, it is best to keep positions small and be ready to cut quickly if wrong.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
C2RS34 trade ideas
Crunch time for Crisp (r) ?CRISPR Therapeutics
Short Term - We look to Buy a break of 59.19 (stop at 54.06)
Further upside is expected and we look to set longs in early trade. A bullish reverse Head and Shoulders has formed. A break of yesterdays high would confirm bullish momentum. A higher correction is expected. Although the anticipated move higher is corrective, it does offer ample risk/reward today.
Our profit targets will be 70.94 and 79.82
Resistance: 60.00 / 70.95 / 80.00
Support: 58.00 / 50.00 / 42.00
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Long (potential takeover, solid pipeline, tons of cash)- potential aim for takover (I suppose by VRTX ) . Company has 2.5B in cash, no debt with market cap about 4.5B$ (EV = 2.0 B)
- solid pipeline and probably will be first who get FDA approval for commercial CRISPR product
- got most of up front payment for milestones in CRISPR among competitors ( about 1b$ from Vertex and collaboration with Bayer). BEAM for example got only 300m$ in up front payment, NTLA even less.
That means CRSP has enough cash for 4 years R&D without share offering and sustain global recession.
CRISPR Therapeutic needs to break 83.46. This is a critical testCrispr has been moving up since the Morning star break out on 13th December. Its further progress hinges on breaking the 83.46 resistance. It has tried piercing this resistance twice but failed. The resistance line at 83.46 and the upward support channel formed since 14th December at $70.37 is intersecting 83.46 on 28th December and CRSP has to break out before that to make any further progress. Option strategies can be deployed to exploit the opportunity either way.
CRSPCRSP It's time to update the idea. The care turned out to be very deep, although this option of leaving for zone 77 was supposed. Now we have dropped out of the channel a little, we will count for an error, we are also holding on to the ema200 during the week, we have formed hidden divergences during the week, taking into account the potential of the company, the growth of xbi and the VRTX partner may be interesting.
It may still come down and test the "trend", but we are already at a good level
CRSP on a major weekly level. What's coming next? Today we will take a look at CRISPR Therapeutics.
Which are the main technical elements we can see here?
a) The price is against a major Support/Resistance level, working since 2018. The price reaction on these zones tends to provide solid insight into future movements.
b) Let's assume the price bounces on the current zone; what can we expect?
- A movement towards the descending trendline around 100.00. IF that happens, that would be a take-profit level for me. Why? Because we tend to observe corrections once the price reaches a major level. You don't want to be insight a sideways movement for 100 days
c) Let's assume that the price breaks the current level and keeps falling. What can we expect?
- A movement towards the ascending trendline around 50.00. That would be the next level where I would start thinking again about bullish reversals.
d) I'm a position trader. What is the most relevant level right now to develop setups?
-If that's your case, I want to see first a breakout of the descending trendline; IF that happens, I want to see a correction of around 50 days. IF that is the case, I will be interested in trading that breakout for the long term. However, at the moment, we are far away from that situation, and I would stay away from this chart for long-term setups.
Thanks for reading! Feel free to share your view of this in the comments.