Long
$DRNA follow-up, aVWAP cluster support
***Please refer to my prior DRNA idea linked at the bottom so you can see my macro perspective on the stock***
DRNA is continuing to consolidate within the larger wedge and is indeed showing greater respect for the aVWAP cluster.
The first test on 1/6/21 was a wick through the aVWAPs, but these past 2 days, on the 2nd/3rd test, the stock made very strong reversals right at the aVWAP cluster, recovering >4% intraday to create 2 bullish hammer candles, which is exactly what I want to see before buying.
So, if I were to buy the stock here, I would choose either just below the lows of the last 2 days, say $21.5 or just below the lowest red aVWAP band, say $21.2 as a stop. Either way, I'd be risking 6-7% to the downside, for a potential year long wedge breakout to the upside, which is my overall thesis for DRNA.
***I may initiate a position within the next 24 hrs, I will update below if I do***
DRNA is continuing to consolidate within the larger wedge and is indeed showing greater respect for the aVWAP cluster.
The first test on 1/6/21 was a wick through the aVWAPs, but these past 2 days, on the 2nd/3rd test, the stock made very strong reversals right at the aVWAP cluster, recovering >4% intraday to create 2 bullish hammer candles, which is exactly what I want to see before buying.
So, if I were to buy the stock here, I would choose either just below the lows of the last 2 days, say $21.5 or just below the lowest red aVWAP band, say $21.2 as a stop. Either way, I'd be risking 6-7% to the downside, for a potential year long wedge breakout to the upside, which is my overall thesis for DRNA.
***I may initiate a position within the next 24 hrs, I will update below if I do***
Note
breakout and pullback, you can try entry here with stop below 25.4, sub 3% risk trade
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.