Shares of Catalyst Biosciences Inc (NASDAQ:CBIO) surged from $5.00 to near $19.00 in one trading day. This happened after the company announced exciting new drug developments, especially for a company with a current market cap of $8 million. This micro sized biotech allows for these crazy runs and pull backs. The key for a trader is timing the buying levels with technical chart levels. This brings me to why at current price points, I strongly favor Catalyst Biosciences...
The stock has fallen from $19 over the last five trading days to $8. This $8 level happens to coincide with the gap window (the price the stock gaped higher by on the drug news). In technical analysis, this is a firm support level. In addition, right below lies the daily 20 and 50 moving averages, also big support levels. In addition, within days the stock will hit a master time count, a key factor known in proprietary price, pattern and time analysis sectors to cause a huge move. There are tons of average investors waiting to chase when the next pop happens. It likely is within a day or two and right around this price point. I am a buyer, looking for a pop to $10.50, maybe higher. Remember, micro cap stocks like this carry a ton of risk so if you decide to buy, go super light on shares.
See Why Catalyst Biosciences (CBIO) Is A Traders Dream Strong Buy
Started by
inthemoneystocks
, Apr 04 2017 02:56 PM
CBIO Small cap
1 reply to this topic
#1
inthemoneystocks
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Posted 04 April 2017 - 02:56 PM
Gareth Soloway
InTheMoneyStocks
#2
kssmibotm
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Posted 07 April 2017 - 12:47 PM
Looks like that gap window did not provide much support. What are your thoughts on CBIO now that the gap is filled?
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