BLUE Biotechnology New Earnings Catalyst LONG Long

bluebird bio, Inc.NASDAQ

Description

⋅ Apr 30, 2023 8:55 PM

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.

Trade active

⋅ May 14, 2023 8:38 AM

Comments

xzfhn9vnnd

⋅ May 10, 2023 2:12 AM

Great day for Blue. I invested based on this take! Appreciate the gains bro. My question is 28.96% short float. Any chance of a short squeeze here?

AwesomeAvani

⋅ May 10, 2023 3:00 AM

Glad you were able to capture part of those gains. It is the predominance of shorts in the biotechnology penny stocks that is a major factor in their volatility. The volatility attracts the interests of both long and short investors and is the foundation of capturing profits. I suspect that any squeezing the was setting up has already played itself out. I assume each and every decent biotech penny stock play has a strong element of short squeezes and the converse. Once price action rising levels out, the shorts will place their new positions and in time the cycle will repeat.
One good source of good information is biopharmcatalyst.com. The subscription level of information is worth it if you have a decent trading account size and like the sector as a fair portion of your trading.

AwesomeAvani

⋅ May 10, 2023 6:57 AM

@xzfhn9vnnd, APLT has earnings tomorrow - I am not sure if it is before or after the market. For sure there will be price action. My view of probabilities is a 5-10% spike in price tomorrow.

xzfhn9vnnd

⋅ May 12, 2023 1:59 PM

@AwesomeAvani broo thank you so much for this take again! Glad I’m not bag holding right now waiting for a squeeze. I’m all out of BLUE made 50% gains. I looked up APLT but decided to go with GMDA instead. Seems like a potential BO candidate.

AwesomeAvani

⋅ May 14, 2023 8:39 AM

@xzfhn9vnnd, see also

xzfhn9vnnd

⋅ May 13, 2023 8:17 PM

@xzfhn9vnnd looks like I switch bag holding blue for bag holding GMDA. Oh well the share dilution is interesting. Hopefully it’s for the upcoming partnership announcement.

AwesomeAvani

⋅ May 13, 2023 8:45 PM

@xzfhn9vnnd, glad you got out of BLUE before the drop of retracement. I see GMDA did the same thing a bit over extended up 1505 in a month.
Better to wait for a pullback to the EMA 100 or 200 and then enter while using the 30-minute or 1-hour chart to watch for that entry. ( Easy up and easy down) All these cash burning biotech penny stocks are priced on potential future earnings and are highly volatile as they respond to news, conference presentations, research publications and FDA process. As you can see from BLUE you can profit from the volatility if you can get into a rhythm. $ 100 that yields 5 % daily and compounded for 225 trading days ( one year) can become 1M. Stay patient become experienced at the process and go with the flow.