$VXRT speculative play after the 60% drop
Updated
Hello dear padawans. I hope everybody is doing well. If you don't know VAXART, they are working on a covid vaccine that is taken orally; apparently the only one in the US (world?). The stock fell today after the first phase of tests yield no antibody response on volunteers (more here: cnb.cx/3oLwzBk).
They are continuing their research into a phase two so this is not all done for their vaccine yet. As you know, when these things happen investors overreact and the chain effect drives the price down; perhaps exaggeratedly in many cases. This may be one of those so we can use that in our favor.
I am using the 1hr timeframe here because it seems the action responded to the fib levels in the 1hr chart more closely than other indicators on the 4hr and daily charts. As you can see, the 0 level was tested twice and the price reacted by moving up. You can also see that that level was support for 6 days before the price spiked up so it seems it is a strong level. Other indicators are obviously turning bearish really quickly after that huge fall so they don't help us much here.
Even though the price bounced twice from that level it could still move back down since investors may still be deciding what to do from here. Also keep in mind this is the 1hr timeframe so it is normal to see these 10% intraday swings.
I may start a trade tomorrow if I can use one of those fib levels to anchor my entry. If it breaks below the 0 fib level the next support is the 50ema on the daily, around $8.5 but at the time of this writing, but I think it would most likely go down to around the $6.9 support and rest there.
I did a similar play on FOSSIL after the drop last week and cashed an easy 40% in a day. Maybe this one will pan out as well.
Safe trades!
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If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
They are continuing their research into a phase two so this is not all done for their vaccine yet. As you know, when these things happen investors overreact and the chain effect drives the price down; perhaps exaggeratedly in many cases. This may be one of those so we can use that in our favor.
I am using the 1hr timeframe here because it seems the action responded to the fib levels in the 1hr chart more closely than other indicators on the 4hr and daily charts. As you can see, the 0 level was tested twice and the price reacted by moving up. You can also see that that level was support for 6 days before the price spiked up so it seems it is a strong level. Other indicators are obviously turning bearish really quickly after that huge fall so they don't help us much here.
Even though the price bounced twice from that level it could still move back down since investors may still be deciding what to do from here. Also keep in mind this is the 1hr timeframe so it is normal to see these 10% intraday swings.
I may start a trade tomorrow if I can use one of those fib levels to anchor my entry. If it breaks below the 0 fib level the next support is the 50ema on the daily, around $8.5 but at the time of this writing, but I think it would most likely go down to around the $6.9 support and rest there.
I did a similar play on FOSSIL after the drop last week and cashed an easy 40% in a day. Maybe this one will pan out as well.
Safe trades!
Show your love:
If you get anything out of this TA, please hit the like button so other can find this analysis quicker.
Follow for more:
If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
Note
Perfect moment to jump into VXRT. You can place a stop loss just below the 0 fib level to limit your downside. Excellent risk/reward ratio.Note
Post market price sitting right on the fib level. Hopefully it holds:Trade closed manually
Closed for a small loss. Not every speculative trade works. To the next.Note
Jumped back in pre market @8.09
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