BLUE Biotechnology New Earnings Catalyst LONG
BlueBird Bio / BLUE had an earnigns report this past week showing earnings for the firat time
but revenue was far below analyst's projections. Price has appreciated 40% in the 4 weeks
since earnings which is about 500% annualized. GO BLUE.
On the daily chart, price was above VWAP and consolidating much of last fall then dropped
this YTD until the earnings report of last week. An uptrend is seen after the earnings.
This has been a significant reversal sustained over the past month
with price rising above the support / demand zone below it. At present, price is one
standard deviation below VWAP making it undervalued and ascending.
I see this as a risky long trade like many biotechology penny stocks but with a decent
probability of profit in consideration of a target of 6.15 which is the top of the long
term high volume area. the stop loss is just below the POC line of the volume profile
at 3.15 An entry at 4.62 ( limit order above SMA200 (redlne) would yield at profit of
1.50 with a risk of 0.48 making for a R:R of 3:1. Another earnings report is coming up this
week. If it is favorable, BLUE could go parabolic to hit the target in a day or two.
If not, it will be time to exit the trade.
but revenue was far below analyst's projections. Price has appreciated 40% in the 4 weeks
since earnings which is about 500% annualized. GO BLUE.
On the daily chart, price was above VWAP and consolidating much of last fall then dropped
this YTD until the earnings report of last week. An uptrend is seen after the earnings.
This has been a significant reversal sustained over the past month
with price rising above the support / demand zone below it. At present, price is one
standard deviation below VWAP making it undervalued and ascending.
I see this as a risky long trade like many biotechology penny stocks but with a decent
probability of profit in consideration of a target of 6.15 which is the top of the long
term high volume area. the stop loss is just below the POC line of the volume profile
at 3.15 An entry at 4.62 ( limit order above SMA200 (redlne) would yield at profit of
1.50 with a risk of 0.48 making for a R:R of 3:1. Another earnings report is coming up this
week. If it is favorable, BLUE could go parabolic to hit the target in a day or two.
If not, it will be time to exit the trade.
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