CN2 trade ideas
Weekly Chart: Price Support Zone, where to addThe setup on the weekly chart looks quite good with price now reaching an area of supportive confluence. I anticipate price support is found on the trendline and fibs where high R-multiple long setups can be constructed. If we decline further I am watching $4.50 and $4.31 (0.618 fib) for a strong bounce. The news this week is immaterial to CPRX's valuation, just short term noise. Fundamentals control long term price movement. It is probable the week's candle is the swing low and the uptrend which is still very much intact ... resumes.
CPRX: 50% Upside OpportunityWith a confluence of strong fundamentals and technical setup CPRX should see $8.60 as a first medium term price target, a 50% price increase from closing price on 10/25/19. Long term CPRX has the potential to go materially higher than first price target based on fundamentals and sell-side consensus.
CPRX didnt cataylze anythingweekly data, regression analysis hit upper band, major candle stick wick.. blow that candle out! due to offering 8 million new shares diluting value.
FIB can retrace back to $2.5 if we arent careful, already did a month ago .
On the medical side the product does have staying power, just a matter of selling it, expensive price tag though. 1st in class
As per the stock, buy low sell high, the option calls Dec 2019 have it at $10.
Ride the roller coaster my friends.
cheers , happy trading!
$CPRX Trade Plan - Short $CPRX would of been the easiest stock to trade since 2013.
2013: Gaped Down to around 0.50 and consolidated for awhile between 0.37-0.60 creating a strong support level. Half way through 2013 it broke out of consolidation and rallied for 2 years over 840% to 5.80.
2015: After it made this huge run It crashed all the way back down to its last major support zone around 0.50 which would of been a great short trade to play if you held the entire year.
2016: Soon after $CPRX hit 0.50 it started trending back up again and ran for 3 years all the way back to its last major resistance level around 5.30-5.80 which would of been another 840% gain.
CPRX - Overnight Hold at 4.01CPRX (1W) 3month High 9M Volume 34 % gain with a fish above high of day ytd uptrending pin on hill
*This would be my 2nd pick the reason being the day pattern finishing above high of day
Play: In at 4.01 near closing on the 20/3/19
Premarket: This is hanging out around 4.09 which is 2% off entry point
Exit will be looking for a nice morning spike here
BUY OR WAITBUY OR WAIT? All signs say the price is going to keep falling, yet one can possibly deduct that you can make a quick play on the market gap that has been created. Furthermore if so, could this be one of this weeks highest yielding short-term play on the naturally risky nature of the pharmaceutical market?
Release of FDA approvals yesterday
www.sec.gov
This quarter's financials showing greater loss then last quarter
www.sec.gov