The chart for $SGMO. This company has been in a downtrend all year with every rally stopped at the top of the trendline. The most recent selloff occurred after the company brought in a new CEO to upgrade management/decision making. His first step was to revise expectations for their pipeline development and clinical trials.
The catalyst for a bounce to me is twofold. - They have a new leader and got the bad news out which can be seen in the gap down. - The Sep 6 Orphan Drug Designation was propelling the stock off the bottom until the macro selloff on friday.
$SGMO continues to try to bottom but remains bearish technically. I'm long as a bounce play and because of fundamentals and am looking to add when this begins a move. - 50 day below 200 day - OBV is improving over past 6 wks which is a bullish indicator - RSI at 45 is trending up
Lots of overhead resistance but this feels like it's ready to go though I could have confirmation bias
Bottoming process restarted after selloff to $3.50. CEO transition and disclosure that company is going to cut their clinical focus in half is likely reason this has been weakest of the group. I continue to watch for a position to add shares but lots of OH resistance. $5.00 is key level so if I see a rally above $4 I'll likely sell covered calls at that strike assuming the resistance will hold again in next month. Note catalyst of Cohort 3 could trigger outsized move that would make any resistance/support mute.
This chart is looking better by the day. The break out and break of the $4 resistance has been notable. Now the test of $4.60ish. If it can break through there the overhead resistance at $5 might be a little tougher without news given the 200 day MA as well I added nicely around the lows just like SQNM. Now well situated but will sell half if it looks like it wants to correct.
$SGMO continues to show weak technicals which won't really improve for chartists until it breaks through $4.50. The 4 tests going to clinic in C17 should provide plenty of catalyst opportunities in either direction depending upon data released. I'm long on their promise and believe the selloff from the refocus and cost cutting by the new CEO was the buying opportunity but so far I've been wrong.
Technicals continue to strengthen. Bearish channel is now looking like a bullish reversal pattern. Break above $5 with volume could make the rest of this year interesting with so many catalysts on the horizon and shorts exiting (10.8m down to 7.6)http://www.nasdaq.com/symbol/sgmo/short-interest
Stock has been selling off the past few days. Worth considering the past trend to determine the import of this move.
- Early Dec moved from $2.65 to $3.65. Failed at 50 day MA. Corrected back to $2.95 which was bottom of bollinger band and close the 61.8% fib retracement.
- Early Jan moved from $2.95 to $4.40. Breaking thru 50/100 day MA. Corrected back to $3.35ish which was 50 day MA support where it bounced. No correlation to Fib retracement level.
- Quick retest of prior move to $4.40 which corrected back to 50/100 day MA at $3.75 which held again. This was a 61.8% retracement again.
- 50 day MA crossed above 100 day which foretold another rally to $4.88. Corrected back to 50 day MA of $4.05 and bounced yet again (another bullish indicator). This one was again larger than the 61.8% retracement which indicates the MA levels are better guides.
- Rally to $5.30. Now correcting again. Could see test of one of several levels: $4.60ish is minor support $4.40 was prior double top and a stronger support. 50 day MA retest current around $4.15 but moving up. Strongest support given history and also bottom trendline.
Trading approach for me: No action until the three levels above are tested. If it got all the way to $4.15 with no news or macro reason, I'd be a heavy buyer but would likely be a buyer at $4.40 as well.
Final note: See volume spikes on bounce off bottom of channel and 50 day MA. Nothing huge but definitely a pickup showing technical buying.
Stock continues to linger. The weekly chart shows how this has been a trading stock for past 6 months or so. Every rally is immediately retraced after which the stock stabilizes and begins another rally..only to be sold off. As much as I'm of the view that this will have an outsized up move this year, the stock today remains a trading vehicle. Also worth noting that ever time the Bollinger Bands have become tight in past 6 months, it has presaged a nice rally which is where we now are.
I have a core position around which I'll trade. I'm buying around $4 but will look to sell when it rallies close to $5. Rinse and repeat
That didn't take too long. SGMO has rallied almost 20% in a week from the above post. Setup was solid. Posters were made available yesterday. Some IP news. The earnings reports, especially BIIB today have changed sentiment in bios. And there have been some negative news with respect to CRISP which has been viewed as an easier go to market tech than zinc fingers. Still believe Sangamo is making the right moves and the stock is undervalued, but it will take quite some time to get to market given clinical trials are 1/2. With so much volatility my core will remain intact but I'll be looking to sell the trading position around $5. Looked at premiums for selling covered calls but not enough to make the trade.
Decided not to get greedy on my trading position so sold it today. Hard to argue with abot 20% in a 2-3 days. Now just have my core position with no plan to write a call against it. Given technical history wouldn't be surprised to see a test of first $5.25ish and then $5.50 though any news good or bad will set up for a volatile more in either direction. If down, I'll look for a new price point to trade again. GL to all holders
Under: Been on the sidelines for a bit holding (building) cash. Now that "BIGLEY" has rolled out the tax plan its time to jump in.
Dec 21, 2017 19:06:02 GMT -6
martyc: Looks like you are buying Msft again!
Dec 15, 2017 11:23:29 GMT -6
martyc: The news that Trump called Rupert to congratulate him sure seems to indicate that this is heading to approval
Dec 15, 2017 11:22:23 GMT -6
Under: DIS finally getting some traction.?
Dec 14, 2017 17:08:45 GMT -6
martyc: I took an entry level position in DIS. Will add eventually to overweight when it becomes clearer that the deal will go thru. Can't believe how well positioned they will be. 60% Hulu. 20% of content watched on NFLX they can pull. More in thread
Dec 14, 2017 11:05:16 GMT -6
Under: Great posts on $DIS
Dec 13, 2017 17:50:49 GMT -6
Under: $ROKU Citron on a war path.
Nov 28, 2017 15:11:20 GMT -6
Under: $HAS takeover bid for $MAT?
Nov 10, 2017 16:16:07 GMT -6
martyc: Not looking like the market will provide any discounted opp for SGMO. Call was just too professional and all signs indicate they are on a great path for commercialization. Happy with core but wish I had some trading shs
Nov 10, 2017 9:04:05 GMT -6
martyc: For anyone looking to find an entry point into SGMO, I'm almost hoping is sells off in next few days so I can add more. They are really clicking but the fact they haven't signed new deals might cause some to exit. Watching as I have room for trading shs
Nov 9, 2017 18:28:09 GMT -6
martyc: Been an interesting ride so far. I figured the Bears would be about this good but hoped the O wouldn't look so lame. Another building yr but still possible to get to 8-8 IMO
Nov 9, 2017 18:26:08 GMT -6
Under: whats up with your Bears this year Marty?
Nov 9, 2017 17:35:25 GMT -6
martyc: Hope you were long ROKU. I wanted to see Q first so missed out
Nov 9, 2017 7:08:53 GMT -6