A Trade A Day: BioCryst Pharmaceuticals
Michael Nauss CMT | StatsEdgeTrading
As always, when we talk about a bio/pharma company we need to keep what they do in mind. These companies have the chance to rally 100% or drop 50% overnight without warning, so we need to size ourselves accordingly.
Starting with the weekly chart of BCRX 0.00%↑ we see that we have reversed a long downtrend and are holding strong after a potential bear trap.
We have a decent short float of 15% which would be 7 days to cover. We have bounced from 4 to almost 7 off the low which might start to make those shorts a little nervious.
Looking at the daily chart we see a nice breakout from a decdening triangle today on 2 time normal volume.
Down to the intraday chart we can see a level around $6.55 that we have responded to a few times now so I am going to keep that in mind as a place to play around.
As always note this is just something I am doing with my money.
Love the charts here. I might get in but in the back of my mind I keep hearing
"Friends don't let friends trade pharmaceuticals"
So many times you wake up to find someone vomited up grasshoppers or grew an extra arm , but hey , that's what stops are for .
Thanks!