This week CYDY has reached the mid-$4 range predicted in April to complete the fractal growth channel since late 2019 lows at $.26. Since April, we know Cytodyn has treated at least 80 COVID patients in its Phase II mild-moderate trial, 70 in its Phase III severe trial and at least 75 EIND emergency patients outside blind trials. We know from Dr. Bruce Patterson's paper preprint medrxiv.org/content/10.1101/2020.05.02.20084673v1 that the blood work shows quick restoration of normal immune function for most emergency patients, and have many anecdotes of EIND patients who were stuck on ventilators or ECMO for weeks come off within a couple days of receiving Leronlimab. We even have good anecdotes on Youtube from blind trial patients: m.youtube.com/watch?v=oKWZzb9wRr0
All hints suggests FDA approval for COVID should be forthcoming once trial results are released in July, along with exchange uplisting and acceleration of trials in NASH, MS, Alzheimers and solid tumor cancers. More trial successes in these indications could fundamentally raise the stock price another 10x this year. Yet the fractal growth pattern of the past 6 months looks nominally complete this week at $4.50. How can this paradox resolve? Barring some unforeseen disaster, a steeper channel is called for in July-August: CYDY may go parabolic.
When we look at the fractal microstructure of stocks that have gone parabolic like Amazon, bitcoin, palladium, 1995-2000 internet bubble, we find a parabolic envelope with linear channels of increasing slope inside, and relatively miniscule flat corrective waves. Inside the parabolic envelope, Wave III channel has a much steeper slope than wave I channel, and wave V is steeper yet again than wave III. Waves II and IV are mere shallow connectors from the upper parabolic envelope to the lower envelope. So instead of a typical 50% wave II correction down to .5*(4.57-0.26) + .26 = 2.46, wave II could be much shallower only hitting the mid $3's again before turning up towards double digits in a quick wave III upon COVID FDA approval. It's also possible that we still do see a normally deep wave II to $2.50 from some unexpected shocking delay or turn of events sufficient to scare out investors who have joined since April on glowing prospects.
CYDY continues to be one of the most amazing speculation opportunities we've encountered. We use the fractal roadmap to scalp and manage the emotions of holding a large, long-term core position.
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