ChristopherCarrollSmith

Nektar should test 21.34 on earnings strength and might fill gap

Long
NASDAQ:NKTR   Nektar Therapeutics
Nektar Therapeutics got a big upside surprise on its earnings report for both earnings and revenue. With earnings and revenue trending up, $21-22 is a fair price for the stock given analyst estimates from before the earnings report. There's resistance at 21.34, so we may initially get rejected from that level.

In the near-to-mid-term, however, the earnings beat should lead analysts to revise their forecasts upward. Depending on the size of the revisions, Nektar could attempt a gap fill up to 27.85. (Average analyst price target is over $29.)
Comment: Nektar is indeed gap filling today, and I am up nearly 20% on this trade. I also discussed this pick on the Wall Street Petting Zoo podcast over the weekend and emphasized that Nektar was my top pick for the week. Give us a subscribe on YouTube, Podbean, or iTunes.
Comment: I went ahead and took some profit on Nektar here, and will buy back in if it dips again.
Comment: Nektar seems to have outpaced its earnings forecasts, so I'd take profit if you haven't already.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.