-Throughout August buyers have been stepping in at a confluence of support:
1) $21.5 level which I view as historically significant (having been tested multiple times from above and below), most notably acting as resistance during the last consolidation period
2) The VWAP from the all time low
3) Back test of the downtrend line
4) 50% retracement of move from all time low
-I also like that the pullback to the downtrend line, which was also a shorter term double bottom, occurred with increased stochastic reading (bullish divergence)
-50 EMA has been tested/rejected about 8 times since STSA closed above the downtrend line, so I view a close above the 50 EMA is buy trigger
1) $21.5 level which I view as historically significant (having been tested multiple times from above and below), most notably acting as resistance during the last consolidation period
2) The VWAP from the all time low
3) Back test of the downtrend line
4) 50% retracement of move from all time low
-I also like that the pullback to the downtrend line, which was also a shorter term double bottom, occurred with increased stochastic reading (bullish divergence)
-50 EMA has been tested/rejected about 8 times since STSA closed above the downtrend line, so I view a close above the 50 EMA is buy trigger
Comment:
Stock retested and held 21.5, I like the idea of half position here and half upon break of that 8/10 candle around $26. Regardless, support remains strong even with last week's selloff, that's a rough signal to me me that whoever wanted to sell is out of the stock
Comment:
What you should take from this idea is biotech stocks may be binary risk scenarios that are not reflected in the technicals