tradeview888

VSTM Longterm view - multiyear base building and breakout

Long
NASDAQ:VSTM   VERASTEM INC
VSTM is using the past 3 years to build a long cup and handle formation, we have seen longterm resistance 6.59 broken with a big enough accumulation to offset previous big sell-off spike. It seems like it wants to try to test mid 7 soon. Breaking 7 could be an easy one with the current momentum.
There might be some serious resistance between 8.3 to 9.8. With the target as high as $17, it will be eventually broken, depending on R&D news, FDA approval, investment, and BO rumors/offers. It seems tough times is behind, we will see how this goes.
* Note: use this as reference only, don't buy any stocks without your own research and DD. This is opinion, not advice.
Comment: Last weekend on June 15, Verastem made major progress presentation during EHA18. The result is impressive, curing cancer is great and its financial payoff is also great. Only a dozen small companies came up with oncology drugs. Approved oncology drugs are rare and valuable.

http://investor.verastem.com/phoenix.zht...

For example, Ariad Pharma was taken out for $5.2B USD. So sooner or later, we might talk billions. FDA, execution, new pipeline, all take time.
https://www.reuters.com/article/us-ariad...

EHA news is very significant, with such stellar result, it might have a frontline treatment in development and become a platform company. As a result, VSTM Stock popped, hitting $9.0X 52WH at some point. However, as previously noted, there is serious resistance between $8-9. It retreated back to the first $7.41 Fibonacci line.

Looking forward, with the help of addition to Russell 2k index, VSTM should climb/oscillate from mid $7 to $9 again. With future catalyst like EU partner, it will pass $9 and test $10. It takes 10 years to develop a good drug, yet people felt holding stocks for 10 weeks is too long. I doubt jumping in and out counting pennies will beat those who research, believe, buy and forget.
Comment: VSTM is forming a bull flag, with the pole top at $9. We are narrowing the trading range and approaching a smaller trading range of $5.67-$5.89. And we are waiting for an event to break $9 and head to $10. Since the current pole height is ~$3. The next target and resistance are around $12. I don't know what will trigger the run-up, but we will see how the break-out will work out.
Comment: Recommend SA Article by Juha Natunen.

Verastem: An Undervalued Rare Oncology Gem With Big Upcoming Catalysts
https://seekingalpha.com/article/4199215...
Trade active: The previous resistance level of $9 has been tested multiple times. After form a classic triangle, it broke out this week. We expect the $9 will become support going forward without significant negative news. Actually, we all expect early FDA approval sometime in Sept. no later than Oct. 5th.
After seeing a textbook triangle flag pattern, we expect a breakout pattern to continue. The first range is between $9-$12. If FDA approval is announced, things might get more dramatic. I expect some people will take some chips off the table. However, the future of Verastem looks bright, especially with sales kicking in soon.
Next week: we might test $10, trader love integers. It might get there lightning fast and retreat.
For many long-term VSTM investors, the real show will start... GLTA

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out