After a recent selloff in mid June 2019, Stock price went from from $6.70 down to $3.44. Cala looks to have established a double bottom. New strong uptrend suggests it has potentially capitulated from the selloff making these levels very attractive for any investors who are sidelined and looking for a good technical/ fundamental trade in biotech. Cala looks to be in the midst of a new uptrend.
June 2019 selloff marked double bottom for CALA.
This looks to be very attractive from risk vs reward standpoint (Assuming markets stay strong, I see approximately $0.40 downside vs $1.50 upside).
Extrapolating previous price patterns (shown in chart) Cala looks to be in the midst of 2nd wave (Bullish corrective wave).
the projection is based off previous price patterns where CALA retraced approximately .618 and extended above the 1.618 Fibonacci extension level.
trend indicators also signaling uptrend in play (see chart).
Tip # 9: Stop losses are a good way to get you out of a trade that you don't want to be in. But remember, they only work during market hours.
Please Like and Follow so I can continue giving trade ideas and build up my reputation. Thank you in advance =) Have a Instagram or Twitter? follow me @VolatilityWatch
Disclosure: I do not own a position in Cala. I may buy/ sell within the next 72 hours. This is not a note to buy or sell. Please do your own homework before investing.
@follow_the_money, yes, true, but I'm in it for the mid/long term. The insider shares buy convinced me. Might drop below 4 for a while, but hopefully will be heading to TP within 6-12 months. Good luck!