Sangamo's: Doom or Gloom Scenario

Recent data release may have changed SGMO's future outlook. Sangamo's long-term chart suggests a potential pullback to $4 is a possibility, but that was before a recent data release by the company for updated Phase 1/2 Results for SB-525. This is an investigational Hemophilia-A gene therapy that showed sustained increased Factor VIII Levels with no reported bleeding events and no factor usage for as long as 24 weeks of follow-up.
Some traders do not believe in technical analysis , that's fine, but I think you may want to re-consider and hear me out on this one. Most didn't believe in Sangamo either (aren't I right Sangamo fan's)!!

What Does The Chart Say?

The long-term pattern (from day of IPO ) suggests that if Sangamo Therapeutics stock price continued its trend, it was a possibility that pattern would repeat therefore potentially pulling back to December 2016 lows of around $3.67. Although this may still be a possibility, Sangamo caught wind in its sails on good data release recently, re-igniting investor optimism. I remain cautiously optimistic with Sangamo, so I went ahead and put together a short-term game plan just in case. Take a look at short list of what I will be watching for while I wait for further confirmation of long-term trend indication.

When making previous highs, Sangamo's stock price has entailed devastating 5-wave corrections, however:

  • The daily chart suggests that instead of a 5-wave correction that could potentially take SGMO to sub $4, SGMO's chart details an AB=BC corrective wave that could potentially mark the low of the long-term selloff.

  • AB=BC corrective waves are equal in length/or magnitude and on a Bullish correction would bounce off the 0.786 retracement level.

  • SGMO had a sharp bounce off this level in Feb 2019 and closed the day right above the 0.786 retracement zone. This is a very important level of support to close upon.

  • If this did not happen I would be on the other side of the trade waiting for a wash, down to $4. But from my experience there still may be fighting chance.

  • Short-term (from Feb 2019 to now) SGMO continues to make higher lows, this is #Bullish.

  • Although SGMO looks to have failed to break current resistance in the chart above, volume /optimism packed enough punch to test $11.85 which is a 1.618 Fibonacci extension (normal extensions range from 1.272 or 1.414).. . #Bullish

  • May not be exactly what a Long-term investor's of SGMO would want to hear, but a pullback around .618-. 786 retracement (shown in green-zone on chart) would be a nice place to add for swing-trade up to earnings .

  • Previous earnings have brought 10-20% run-ups, but be careful to not get trapped in an earnings selloff.

  • If SGMO continues to make higher-lows, this could be a potential range to be looking for a swing position.

  • Breakout of this zone could mean big $$

  • Fall below blue trend line could mean devastation

  • my stop-loss will be set below blue trend-line.

Again, it's a long way down to $4 if trend continues to follow its Long-term pattern. Previous trends have issued 5-wave correction, peak to trough, the current pattern details an AB=BC harmonic pattern (outlined in #RED) please press play and zoom out to see what I am referring to.

Tip # 5: A trend line in mathmatical terms means the line of best fit. When using them, make sure they touch as many points as possible on the chart.

Please like and follow so I can continue doing technical analysis . Thank you in advance everyone =)


Disclosure: I do not own SGMO . I may buy/sell within the next 72 hours. This is not a note to buy or sell. Please do your homework before investing.


Check out my some of my current trades.


Simple and clean charting, all the best on your journey mate :)
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