Avadel Pharmaceuticals is a biotech company which is currently anticipating approval for FT218, a drug treating narcolepsy. Im not gonna go in depth on it cuz it really doesn’t matter for the swing I'm tryna do, but basically breakthrough therapies like FT218 are highly demanded by investors. Thus, when it breaks out of this multi-year consolidation zone (the PDUFA anticipation being the catalyst) it will likely carry up 20+%. Playing this based on the fib levels, 9.50 (18.9% up from current levels) would be the first target and 10.75 (34.5% up from current levels) would be the final target. Although it is possible for it to run up to 14.34, it is highly unlikely unless a squeeze happens (short float only 10%, which is low) or big news comes out. Make sure to sell before PDUFA date, though, since major selling after the FDA decision is common, whether or not the FDA approves or rejects FT218.
I'm not a financial advisor and everything I have said thus far is all my opinion, not financial advice. Please trade only what you are willing to risk, as trading biotechs can be very risky.
I'm not a financial advisor and everything I have said thus far is all my opinion, not financial advice. Please trade only what you are willing to risk, as trading biotechs can be very risky.