OCGN - how to play the COVAXIN news !OCGN:
What do they do: mainly focus on developing eye disease therapy. they stepped into the Covid vaccine play and they have a strong product coming – COVAXIN –get this : vaccine can be at room temperature that is huge! transporting and storing with cooling can triple the costs and Pfizer’s vaccine has to be in cooling conditions and if I am not mistaken – double-check me on it – except AstraZeneca all of them need cooling. The vaccine of Ocugen is in cooperation with Bharat Biotech. the vaccine is supposed to be stronger against different strains of covid that are emerging …. The reason for all the noise is in the fine print -they closed a damn good deal on the sales in the U.S – they will receive 45% of profits with no upfront payment (someone was drunk when he agreed to that deal LOL)… so price target given by Roth Capital is 8$ -don’t agree – I think in the next year if all goes well this stock is above 15$ if we factor in the “meme” market going on could be much more and much faster but let's stay conservative.
Ok lets talk shop – technical:
POC (point of control) is not good – 3,18 but I am certain it will rise in the upcoming week – remember POC is like a “magnet” it will attract the price to it for obvious reason.
Volume: average volume is 63M, last 2 days trading above 100M.
50% line of retracement is 3.95 (round it up to the 4$ area – its always areas not specific numbers ) which means we will need to see the golden number getting touched sooner or later (again consider “meme” market conditions are extremely abnormal)
4.5$ -6$ needs to be retested – there needs to be a retracement to that area with some sideways trend before we can say let’s see 8$ - in normal market conditions….
Notice on the chart the yellow square showing ling upper wicks meaning buying power got very weak – matches the volume orders on the left (the colors are somewhat faded meaning it needs accumulation), reversal signal.
The red box in the lower part of the chart is the forbidden zone – it is the other side of the POC and the stock flew through that price too quick so if we see a pullback to the POC line we may see a sell-off to that area- don’t believe this will happen so soon as sentiment is very high
Bottom line – I think we need to see some pull back the upcoming days before the stock goes higher to the next level of 7$-usually happens after a 2-3 days rally and once that is done we can target 7$+.
Please keep in mind we are trading on a very speculative market and everything is highly inflated along with 1.9T $ coming and meme trend this is a very risky market and using my analysis on it can mean shit because it is NOT BEHAVING like it should at all !!
FDGT will wait for a pullback before entering as the trend doesn’t look healthy
This is not a recommendation of any sort
Trader safe and be safe – we are the traders union and we trade by our own rules!
