Description
⋅ EYPT is now on another breakout on the 2h chart similar to what occurred
from mid-December to mid-January. On the indicators the MACD shows
the K/D lines on a steep upward slope. For me, what set off my interest
was a relative volume scan that produced this stock on the list.
The relative volume this week and consequential accumulation triggered
the breakout with those volume spikes
Fundamentally, EYPT had a catalyst as it completed one phase of its
FDA clinical trials for a treatment for macular degeneration, a
debilitating eye disease of the elderly. The potential market
is several multiples of the stock's current market cap.
This company is a takeover candidate as it is young without
a big pipeline but with upside potential.
The relative volume of 4X to 8X is a sure sign that buying
pressure will move the price. Price has crossed the SMA50 just as it
did last winter. The price is up 40% or more this week. Could this be
a pump and dump? Maybe. For sure it is a speculation play just like many
NASDAQ penny biotech stocks For mem the price action of last winter
with a 120% gain in one month is reassurance for this time around
with some hopeium thrown into the mix with the technical analysis.
I will buy a call option under the current price with the 4/21
expiration and leverage the speculation a bit. In the past day,
this option rose 67% based on the price surge of the underlying stock.