LGVN Fish Hook Pattern
LGVN The clinical stage biotechnology company developing cellular therapies for life-threatening conditions, Longeveron Inc. (NASDAQ: LGVN) has been regaining some of the momentum it lost following its 128% surge. Considering that its Alzheimer's treatment showed impressive results in its phase 1 trials, many investors believe LGVN stock could be a profitable long-term play.LGVN stock price is currently $11.38 as the stock trades near its resistance at $11.56. LGVN stock shows a stronger resistance at $12.89 with a main support at $8.87 and a weaker support at $10.62. After surging 128% at the end of March with news of Lomecel-B’s positive results, accumulation has been falling. The MACD is currently bearish and the RSI is resting at 53.
Overall this price action appears to be forming a fish hook chart pattern on the daily chart. The fish hook chart pattern is characterized by rapid selling over a number of days – which we can see with the 20% drop starting on the 5th. Gradually, selling slows as panic selling stops and a brief period of consolidation follows. This is when the RSI drops near 30 which happened with LGVN stock around the 11th. Since then the RSI has increased rapidly, forming the last leg of the chart pattern – resulting in the roughly 40% increase over the last few days as volume poured in. With the pattern almost complete, it may be risky to enter now. But LGVN stock could see a further increase depending on volume.
With a low float of 4.46 million, LGVN stock shows significant volatility and typically runs on positive news. But like many biotech and pharma stocks, LGVN stock is a long-term investment for most investors holding out for FDA approval and commercialization. In this way, LGVN stock moves on binary events with lulls in between.
Given that Lomecel-B showed encouraging results in its phase 1 trials, LGVN’s treatment could have significant upside potential if it is able to continue achieving positive results in these larger clinical trials. Meanwhile, investors will be watching for LGVN’s next quarterly report after the positive results of its last report. If the company makes consistent progress this year in securing grants it will help offset the costs of its clinical trials putting the company in a better financial position. But as is, LGVN is confident that it has the funding to sustain its operations well into 2024 which lowers the risk of dilution. In light of this, many investors are bullish on LGVN stock’s long-term potential.
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