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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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