whynow111
Long

VSTM Could go down even more (Part 2)

NASDAQ:VSTM   VERASTEM INC
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Note: This is not an investment advice but my opinion alone. Please feel free to comment.

This is a follow on from the first posted Idea "VSTM Could go down even more"

VSTM did get to $3.14 as a day low on Dec 21st just above the FIB ratio 0.786. However I do not like how it got there looking at the 1 year chart. As you can see the sub wave v of C has not started yet as sub wave iii was very deep. To complete the C wave, all sub wave must be completed before we can expect a new uptrend.I expect a bounce soon for sub wave iv then the final sub wave (v).

I would like for wave 5 to stay above $3.03 which is the 0.786 ratio, breaking that could set us lower to around $2.80.

Looking at the 1year and 5 Year RSI , we are way oversold but wave 4 and 5 could begin a RSI bullish divergence .
just so you know im projecting that wave 5 is finished and vstm has started wave 1/ maybe 2- watching the 15 min chart sub waves of 5's are everwhere- but elliot wave theory- we can all see diff. waves.
on my charting wave 1 was run up to 3.60 then wave 2 back down to ~3.30ish... Would you mind sharing your projection of the next 5 wave sequence?

Happy New Year!,

-F.t.M (aka scooby_snack)
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whynow111 follow_the_money
@follow_the_money, it has to hold $3.14 if not all bets are off. Also it has to go above 4.24 before I start to think of wave 3.
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As you can see from the date of the post, I did that before the move up which I expected. And from the chart I think this small move UP (and maybe for another day) will be iv, the v will end it. I don't want it to go below 3.04 though (that would be ideal) but its better for it to finish the correction. In my opinion it would be prudent to see how it plays all through this week.

I will continue to monitor and update the chart
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So, I see the 2.85-2.90ish level to be a bottom as well. ALSO think there may be a small bounce in play to the 14EMA before going farther down.
BUT- when saying that, I have to keep in mind the severely oversold conditions of biotech sector.. then how is NBI going to affect trend?
I tend to put technical with fundamentals to do "full diagnostics" but of course that's relative term.

Question: After this recent small bounce we received Christmas eve (when markets were red) do you still have same opinion that VSTM will hit 2.85-3.00.. if so, how does the small bounce we got the 24th affect the ABC ??

thanx!!
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whynow111 follow_the_money
@follow_the_money, see my reply above
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@whynow111, Ya I had just saw it, its been in this downward channel, so its possible. I see this moving sideways in range between 3.12-3.40 for time being as long as market doesnt throw up on us again..I'm waiting for some type of confirmation that this is done and out of downward spiral b4 getting any more otherwise this pinching pennies at this point IMO
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whynow111 follow_the_money
@follow_the_money, dont forget to like and follow me to get new ideas and updates.
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