SIGA a Biotech breakout last summer- then breakdown ? reversal
As shown on the daily chart dating back to last summer SIGA has been on a persistent decline since the cooling down from the parabolic
breakout last summer. Is there a repeat in the picture? Fundamentally, earnings continue to be weak. much of the stock is held by insiders and
the whole monkey pox thing is settled down although the main product may have use in malaria, leper's disease or whatever other orphan use
it has indications by the FDA and its foreign counterparts.
The technical picture is that it is sitting just above support shown by the Supply Demand Zone indicator of Luxalgo having double bottomed
and now a bit above it. The volume indicator shows a mild increase in buying volume in the past couple of weeks. Price is more than one
standard deviation below the long-term anchored VWAP in the undervalued over-sold zone.
With a weak biotechnology company where insiders have a fair portion of the shares, manipulation can occur. Once a price rise issues
short sellers will buy to cover, and retail traders will jump on board, insiders will "manufacture" a catalyst to prime the pump further.
At some point, the run-up will stall, and the implode itself. I will get on the ride early, a biotechnology speculative trades are
in my playbook. The stop loss here is below the demand zone while the target is the 50% retracement of the downtrend drawn onto
the chart by the Fibonacci Retracement tool.
breakout last summer. Is there a repeat in the picture? Fundamentally, earnings continue to be weak. much of the stock is held by insiders and
the whole monkey pox thing is settled down although the main product may have use in malaria, leper's disease or whatever other orphan use
it has indications by the FDA and its foreign counterparts.
The technical picture is that it is sitting just above support shown by the Supply Demand Zone indicator of Luxalgo having double bottomed
and now a bit above it. The volume indicator shows a mild increase in buying volume in the past couple of weeks. Price is more than one
standard deviation below the long-term anchored VWAP in the undervalued over-sold zone.
With a weak biotechnology company where insiders have a fair portion of the shares, manipulation can occur. Once a price rise issues
short sellers will buy to cover, and retail traders will jump on board, insiders will "manufacture" a catalyst to prime the pump further.
At some point, the run-up will stall, and the implode itself. I will get on the ride early, a biotechnology speculative trades are
in my playbook. The stop loss here is below the demand zone while the target is the 50% retracement of the downtrend drawn onto
the chart by the Fibonacci Retracement tool.