Seattle Genetics (Nasdaq: SGEN) has beat biotech averages significantly the past few months and has come to meet my $80 pt which also happens to make a bearish harmonic butterfly pattern. SGEN could have more upside as it tests $80-81 but risk/reward would suggest a potential double top that can take this down quite a bit in a short amount of time. If I was short I would be looking to start a position above $80.
According to the bearish setup SGEN should find 50 -618 retracement before next ER bringing SGEN down to around the $69 mark. As I have outlined in this setup, SGEN is still making higher lows on long-term chart and after retracing back to $69, should see continue uptrend to ~$84 (assuming another positive ER or catalyst).
Tip – Even if you rely mostly on company fundamentals, you should be aware of support/ resistance levels.
Please Follow, like, comment, and share so I can continue finding awesome trades. Thank you in advance!!
Find me on Twitter or Instagram @VolatilityWatch
Disclosure: I do not own a position in SGEN. I may buy/sell within the next 72 hours. This is not a note to buy or sell, please do your homework before investing.