Axsome Therapeutics building momentum
Axsome Therapeutics Inc (AXSM)
I have been in this spot trade since $50.77. We are now at $72.93. I have much higher targets as you can see from the chart.
This is a long term trade looking to hold for 12 – 24 months however feel that something is going to happen within 6 – 12 months based on the chart.
- Forming pennant on chart and RSI. Potential for breakout.
- Steadily increasing OBV (On Balance Volume) demonstrating continued interested in the trade.
- Stochastic Momentum indicator (not included on chart is driving upwards on the weekly).
- You can see the orange boxes which act as accumulation zones with double bottoms before the larger move occurs.
- We are above the 200 week and using it as support and we are above the 200 day also using it as support so we have limited downside with strong support.
This purchase has been helped me recognized that Pharma appear to companies perform much better when the general market is in decline. They appear to be inverse risk on but also make small advances during risk on periods. It’s a market that I am becoming increasingly interested in as a diversifier and value lock. Obviously this is a smaller pharma company with higher risk in the trade, however if I was Regeneron or Johnson and Johnson and I see Axsome’s patents, drug offerings and the general population they are targeting with depression, Alzheimer’s and fibromyalgia, seems like a no brainer to buy them out.
Fundamentals:
AXSM are a Small Bio-Pharma company with market cap of $3.17 Billon. In August 2022 Auvelity Anti-Depressants was FDA approved & is the only rapid-acting oral medicine for MDD with labelling describing statistically significant antidepressant efficacy by one week.
AXSM received Breakthrough Therapy designation from the FDA for an Alzheimer's disease drug development and are at the NDA phase for developing a drug for acute treatment of migraine. AXSM are also developing a treatment for narcolepsy and separately for fibromyalgia.
All in, AXSM's offerings are building momentum. They have developed the fastest acting anti-depressant drug and are bringing it to market, and have a four other drugs in development, all of which have a large patient base. The company would be ripe for a buyout.
I have been in this spot trade since $50.77. We are now at $72.93. I have much higher targets as you can see from the chart.
This is a long term trade looking to hold for 12 – 24 months however feel that something is going to happen within 6 – 12 months based on the chart.
- Forming pennant on chart and RSI. Potential for breakout.
- Steadily increasing OBV (On Balance Volume) demonstrating continued interested in the trade.
- Stochastic Momentum indicator (not included on chart is driving upwards on the weekly).
- You can see the orange boxes which act as accumulation zones with double bottoms before the larger move occurs.
- We are above the 200 week and using it as support and we are above the 200 day also using it as support so we have limited downside with strong support.
This purchase has been helped me recognized that Pharma appear to companies perform much better when the general market is in decline. They appear to be inverse risk on but also make small advances during risk on periods. It’s a market that I am becoming increasingly interested in as a diversifier and value lock. Obviously this is a smaller pharma company with higher risk in the trade, however if I was Regeneron or Johnson and Johnson and I see Axsome’s patents, drug offerings and the general population they are targeting with depression, Alzheimer’s and fibromyalgia, seems like a no brainer to buy them out.
Fundamentals:
AXSM are a Small Bio-Pharma company with market cap of $3.17 Billon. In August 2022 Auvelity Anti-Depressants was FDA approved & is the only rapid-acting oral medicine for MDD with labelling describing statistically significant antidepressant efficacy by one week.
AXSM received Breakthrough Therapy designation from the FDA for an Alzheimer's disease drug development and are at the NDA phase for developing a drug for acute treatment of migraine. AXSM are also developing a treatment for narcolepsy and separately for fibromyalgia.
All in, AXSM's offerings are building momentum. They have developed the fastest acting anti-depressant drug and are bringing it to market, and have a four other drugs in development, all of which have a large patient base. The company would be ripe for a buyout.
Comment:
Axsome continues to perform and is in prime territory to break out of the pennant. Stay on your toes. Update regularly on associated platform.
Comment:
Axsome continues to perform and this trade is turning into one of the trades of the year.
We are presently breaking out of the pennant. More updates on tw--itter also.
We are presently breaking out of the pennant. More updates on tw--itter also.
Comment:
Axsome Therapeutics Inc
AXSM
A lot of interesting developments with AXSM
Chart
- Still above 200 day and 200 week SMA
- Attempting to breach large upper pennant
- Rising wedge is concerning however the lower
pennant resistance line aligns with the 200 day
offering what should be significant support.
The 200 day or 200 week could offer a buy in for
those interested. Alternatively you could buy at a
a level acceptable to you and make the 200 SMA's
your stops, preferable the 200 week as we had a strong bounce off this level already.
I remain long term long however I am a little concerned by this rising wedge. Its comforting being in 30% profit with the 200 day/week looking like reasonable support.
Interesting News
- AXSM executed an offering of 3,000,000 shares of
its common stock at the public offering price of
$75.00 per share. The aggregate gross proceeds to
AXSM before deducting underwriting discounts
and commissions and offering expenses, were
$225 million.
- AXSM's intention is to use the proceeds to
advance its late-stage pipeline, including funding
existing and potential new clinical programs,
products, and product candidates, to expand its
commercialization efforts, and for other general
corporate purposes.
This news would be perceived as negative from investors and could signal a turning point for price...that being said, the chart structure remains intact and we appear to getting a bounce off the rising wedge lower resistance for now. We have the 200 day SMA just under that. I wont get too concerned unless we start losing these levels. If we do, we have already had a strong bounce off the 200 week SMA. For now my stop is under the 200 week SMA. If it is hit I will still retain a 19% profit so I'm not too concerned. All in, given the perceived negative news a drop of 20% after the recent 70%+ run isn't too bad and could a signal of strength in the price. Time will tell. The chart gives us structure, risk levels and confidence in the trend as it develops.
I'll keep you posted.
PUKA
AXSM
A lot of interesting developments with AXSM
Chart
- Still above 200 day and 200 week SMA
- Attempting to breach large upper pennant
- Rising wedge is concerning however the lower
pennant resistance line aligns with the 200 day
offering what should be significant support.
The 200 day or 200 week could offer a buy in for
those interested. Alternatively you could buy at a
a level acceptable to you and make the 200 SMA's
your stops, preferable the 200 week as we had a strong bounce off this level already.
I remain long term long however I am a little concerned by this rising wedge. Its comforting being in 30% profit with the 200 day/week looking like reasonable support.
Interesting News
- AXSM executed an offering of 3,000,000 shares of
its common stock at the public offering price of
$75.00 per share. The aggregate gross proceeds to
AXSM before deducting underwriting discounts
and commissions and offering expenses, were
$225 million.
- AXSM's intention is to use the proceeds to
advance its late-stage pipeline, including funding
existing and potential new clinical programs,
products, and product candidates, to expand its
commercialization efforts, and for other general
corporate purposes.
This news would be perceived as negative from investors and could signal a turning point for price...that being said, the chart structure remains intact and we appear to getting a bounce off the rising wedge lower resistance for now. We have the 200 day SMA just under that. I wont get too concerned unless we start losing these levels. If we do, we have already had a strong bounce off the 200 week SMA. For now my stop is under the 200 week SMA. If it is hit I will still retain a 19% profit so I'm not too concerned. All in, given the perceived negative news a drop of 20% after the recent 70%+ run isn't too bad and could a signal of strength in the price. Time will tell. The chart gives us structure, risk levels and confidence in the trend as it develops.
I'll keep you posted.
PUKA
