Our ABML Play seems to be working out so far. Here is another Gem that could work our similar. I love cheap stocks.
NOVN is a clinical development-stage biotechnology company, which focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases.
Checking Wallstreetzen, it appears to be backed by all the big boys like Vanguard, Blackrock, Renaissance etc...
The company is developing a treatment for Molluscum Contagiosum, soon to be the only one FDA approved for Molluscum treatment if everything goes well.
The readout for their B206 trial in June is expected to arrive with positive results from the data.
Interesting. I was just looking at the ABML breakout earlier, I added it to my watchlist after seeing your post. Do you mind explaining the technicals behind these kinds of trades? I see you're looking at the MACD cross and bounce of the MA, but what are the converging lines about and what do they mean? How do you decide that it is a probable breakout? Maybe toss me some keywords I can research in regards to what these setups are called? I'd appreciate it. Thanks!
I think I'll just yolo this one for fun though.
jackohgorman
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@seanc987, Thanks. Yes you spotted correctly with MACD and EMA etc.. Always check MACD cross for a 1st confirmation of breakout. However, sometimes an upward swing on the daily MACD can be brief, so a bounce off the 200 EMA is generally another good sign highlighting support, of course.
The converging point of the lines are actually used for reference with regards to timeframe, where the breakout needs to occur before or at the Apex. It's our target date because if it does not occur by or before that date, we must move on. Think of it like a woman who plays the classic game of hot and cold. One minute she's into you, then one minute she's not. If there's no major improvement then it's time to drop that dump and Forrest Gump!
The lower trendline is where I look for areas of support on a short-term uptrend since we have higher lows. Vice versa with the top trend line, if it were to continue downwards then the line areas would be resistance levels. A premature move of price above or below either line could indicate the true trend. It works inversely so we confirm a bullish pattern if we cross the higher trend line, and bearish for the lower so I know my stop loss should kick in. Also, notice how the EMA nearly bounces off the lower trendline which is another good signal.
You may find the patterns look a little similar to Ascending/Descending wedges/Triangles.
While It may seem like an unintellectual strategy, it usually works for me as the trendlines are good indicators on how price can follow. But of course this is a speculative play which should be fun. High Reward, low risk.
jackohgorman
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@seanc987, Big surprise this morning with a 1-for-10 Reverse split. Not good hence why I had the tight stop. Premarket is not good. Apologies for any inconvenience but these are the wildcards at play. All that matters is having more winners than losers to balance it out.
I think I'll just yolo this one for fun though.