MRSN - 5 months HEAD & SHOULDERS══════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
After a careful consideration I came to the conclusion that:
- it is crucial to be quick in alerting you with all the opportunities I spot and often I don't post a good pattern because I don't have the opportunity to write down a proper didactical comment;
- since my parameters to identify a Classical Pattern and its scenario are very well defined, many of my comments were and would be redundant;
- the information that I think is important is very simple and can easily be understood just by looking at charts;
For these reasons and hoping to give you a better help, I decided to write comments only when something very specific or interesting shows up, otherwise all the information is shown on the chart.
Thank you all for your support
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
Breakout Area, Target, Levels, each line drawn on this chart and any other content represent just The Art Of Charting’s personal opinion and it is posted purely for educational purposes. Therefore it must not be taken as a direct or indirect investing recommendations or advices. Entry Point, Initial Stop Loss and Targets depend on your personal and unique Trading Plan Tactics and Money Management rules, Any action taken upon these information is at your own risk.
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MRSN trade ideas
Mersana Therapeutics: Enjoy!If it holds support, it'll take off and head towards the top end of the range. Check out the crazy Call Options volume for the 8/18 $7.5 Strike Price... over 23,000 for this little unknown Pharma company. Somebody knows something... don't you think?
Mersana Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the development of antibody-drug conjugates that offer clinical benefit for cancer patients. Its product candidates are Upifitamab Rilsodotin (UpRi), XMT-1536, and XMT-1592. The company was founded by Mikhail Papisov in 2001 and is headquartered in Cambridge, MA. The listed name for MRSN is Mersana Therapeutics, Inc. Common Stock.
Strong Move Incoming in Mersana TherapeuticsMersana is currently right at the resistance within a big falling wedge - a bullish pattern upon eventual breakout.
What separates this case from the normal breakout is that Mersana recently made a perfect RSI closing on the lower bullish red line. As discussed in detail in the RSI trilogy, once the RSI comes from low levels (as in below the lower bearish blue line, typically below 30) and makes a dynamic move up, just to bounce back on the lower bullish red like "a hook" (as on the picture), it's an incredibly strong sign of more to follow.
What these RSI strategies do is to identify pivotal price tops and bottom that in turn match RSI pivots. The exact RSI values (as in the lower bullish red and upper bearish blue) are extracted through accumulation and distribution phases. For the point with these levels is that they represent a form of mathematical "max pain", after which the price has a remarkably high likelihood of reversing. And right now, such reversal is very likely in play.
I have personally taken a position already. The trade signal is automatically disqualified and stopped out if the price and RSI were to drop below the lower bullish red line with a margin of at least >1%. In this case, we're talking a daily closing price of $10,75 or below.
The fantastic thing about these RSI strategies is that, once you act upon them immediately, they offer ridiculously high RR, often 50:1-100:1.
A properly executed lower bullish red acts much like a trampoline to catapult the underlying fast towards high prices. The same applies in reverse for the upper bearish blue, which in turn flashes every red light to get out of the way.
Tight Risk Reward, Good CompanyMersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need.
After an insider at Mersana Therapeutics bought shares following a May 2020 selloff triggered by an interim data release, the stock rallied over 400% during the next eight months.
Another bounce back may emerge again with an insider purchasing shares after a one-day plunge of nearly 30% on tepid but still encouraging data from its lead ADC asset.
A 180-patient single-arm registrational trial is set to be initiated for XMT-1536 in the treatment of platinum-resistant ovarian cancer this quarter.
With early-stage clinical data due from both its candidates in the treatment of NSCLC adenocarcinoma in 2H21, Mersana merited another look.
I like it long here as tight risk-reward play.
MRSN rangebound; swing traders will love thisEver since that crazy drop MRSN has been rangebound. As you can see, the channel can be split into two smaller channels. This is the ideal scenario to buy the bottom and sell the top. The Stochastic RSI is your best friend in this type of setup. If you are more conservative, wait for the candle to touch support and look for a bullish crossover on the RSI. That is your "buy" signal. However, as you can see from the vertical lines, every time the Stoch RSI crossed bullish the price went up, even if the candle was not touching support. The price move was smaller in those cases so you would have a little less profit. Any of these strategies would be lucrative here. Your risk is minimal because you can exit if the channel is broken to the downside.
Safe trades!
***If you get anything out of this TA, please like and follow for future updates and more TA. Thanks a lot!***
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
MRSN day trade opportunityI bought into this stock for a swing trade after the huge drop but was stopped out for minimal loss. I noticed it has been rangebound for a while so I started buying the bottom and selling the top of the channel. Reasonably lucrative so far. It broke outside of the channel so the pattern may have been broken. If it goes back into the channel I will start trading it again. This is the 15min time frame but I am using 5min, which can't be published due to small resolution. Safe trades!
***If you get anything out of this TA, please like and follow for future updates and more TA. Thanks a lot!***
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
MRSN re-testing v-bottom breakout necklineAfter breaking above the v-bottom neckline MRSN is now retesting the breakout level for the tenth time after the breakout. Given the fact that the price dropped 40% from the recent highs and that this seems to be a strong support level I am entering a trade tomorrow with a stop loss just below the neckline. Seems to be as safe a play as it gets.
***If you get anything out of this TA, please like and follow for future updates and more TA. Thanks a lot!***
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
Trade Journal: Long $MRSN - 4/28/2020MRSN is right at the 52 week highs and forming a tight flag pattern . My plan was to get long above 9.50, clearing the HVN, with a stop loss below 8.48.
Entry - 9.52
Stop Loss - 8.48
Target - 12.50
I am planning on taking small profits above 10 and holding the rest with the trend.
FDA lifts partial hold on Mersana cancer drug trial, but shares Shares of Cambridge-based Mersana Therapeutics Inc. plunged Monday despite announcing that the FDA would allow it to fully restart a cancer drug trial that was paused in July after one patient died.
www.bizjournals.com
globenewswire.com