After a recent selloff in mid June 2019, Stock price went from from $6.70 down to $3.44. Calithera Bio-sciences (Nasdaq: CALA) looks to have established a double bottom. New strong uptrend suggests it has potentially capitulated from the selloff making these levels very attractive for any investors who are sidelined and looking for a good technical/ fundamental trade in biotech. Cala looks to be in the midst of a new uptrend. Find out more about CALA, here.
- June 2019 selloff marked double bottom for CALA.
- This looks to be very attractive from risk vs reward standpoint (Assuming markets stay strong, I see approximately $0.40 downside vs $1.50 upside).
- Extrapolating previous price patterns (shown in chart) Cala looks to be in the midst of 2nd wave (Bullish corrective wave).
- The projection is based off previous price patterns where CALA retraced approximately .618 and extended above the 1.618 Fibonacci extension level.
- Trend indicators also signaling uptrend in play (see chart).
Tip # 9: Stop losses are a good way to get you out of a trade that you don’t want to be in. But remember, they only work during market hours.
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Disclosure: I do not own a position in CALA. I may buy/ sell within the next 72 hours. This is not a note to buy or sell. Please do your own homework before investing.