Don't Ignore This Chart!

Here's A High Reward To Risk Biotech Play

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First, please understand that any time you trade a small biotech company, there are considerable risks attached.  These types of stocks are certainly not for everyone.  One size does not fit all.  However, if you enjoy taking higher risk in an attempt to score high returns quickly, then take a look at Sarepta Therapeutics (SRPT):

SRPT broke out above price resistance near 37.00 and quickly surged to 44.00, but became very overbought with an RSI reading above 80.  The recent selling has served a couple of purposes - first to test price support and the rising 20 day EMA on light volume and second to relieve the overbought oscillators with both RSI and stochastic near 50 now.  Consider an aggressive trade with entry at the current price, a closing stop beneath the 36.00-36.50 area and a target of 44.00 to retest the recent high.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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