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.
Please Like, Comment and Follow so I can continue giving trade ideas and build up my reputation. Thank you in advance =)
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.
MS Money Move and its Chief Operating Officer who is a scientist and individual investor, as well as its affiliates are not registered financial advisors. Our posts should serve as educational material to help you conduct due diligence research. Posts and articles are not directives or recommendations to invest in any security. We reserve the right to buy or sell any security for ourselves without any notification except when required by law. We are not responsible for the action of our affiliates. Investment theses may change due to the variable nature of the securities market. Because of this there is great risk when investing in stocks and options which can result is capital loss. Additionally, past performance by MS Money Moves or any security is not a predictor of future performance. Everyone should conduct their own research and due diligence before making an investment decision. We recommend you consult a financial advisor regarding any investment action.
The biotech sector is especially volatile. Stock prices may fluctuate substantially based on material or nonmaterial developments. We encourage everyone to familiarize themselves with clinical trial processes, relevant terminology, FDA/SEC rules and regulations, and the general processes of drug & therapy development/approval. Always do independent research in a security prior to investing.