Nutrix Therapeutics ( NRIX) has momentum for earnings LONG
NRIX , on the 15 minute chart is experiencing increase volatility and volume now two
days out from its earnings report. It printed a "big ass" green engulfing candle to finish the
week. The MACD with zero lag shows a bullish inflection in the lines
On the daily chart, price fell about 25% in 2023. earnings have been both line beats but
the negative cash flow remains as a challenge. The volume and volatility show both are
heightened in the pre-earnings run- up. . This is a risky earnings
play, NRIX does not yet make money like many other young biotechnology companies trying to
grow However, because it lost less than forecasted, buyer interest has increased. There is
an absence of any options volume and so illiquidity prevents consideration of options
trading. I suspect a long trade in shares may gain to $14 targeting the pivot highs of
April 23 and November 22 for projected gain upside of about 65% ( stop loss of 2.5%)
If earnings disappoint trader expectations and price fades I will stop out with a loss of about
2.5% This makes this long swing trade a projected 2.5 /65 a R:r of 25 which validates it as
a conservative trade if taking only 5% or less of buyer power applied to the risk. Biotechnology
is expected to be one of the hottest subsectors of 2024. This could be one of them.
days out from its earnings report. It printed a "big ass" green engulfing candle to finish the
week. The MACD with zero lag shows a bullish inflection in the lines
On the daily chart, price fell about 25% in 2023. earnings have been both line beats but
the negative cash flow remains as a challenge. The volume and volatility show both are
heightened in the pre-earnings run- up. . This is a risky earnings
play, NRIX does not yet make money like many other young biotechnology companies trying to
grow However, because it lost less than forecasted, buyer interest has increased. There is
an absence of any options volume and so illiquidity prevents consideration of options
trading. I suspect a long trade in shares may gain to $14 targeting the pivot highs of
April 23 and November 22 for projected gain upside of about 65% ( stop loss of 2.5%)
If earnings disappoint trader expectations and price fades I will stop out with a loss of about
2.5% This makes this long swing trade a projected 2.5 /65 a R:r of 25 which validates it as
a conservative trade if taking only 5% or less of buyer power applied to the risk. Biotechnology
is expected to be one of the hottest subsectors of 2024. This could be one of them.
Trade active:
Decent price action stop loss raised. Holding position.
Trade active:
Holding through the general market pullback.
Trade active:
NVAX made back the losses of yesterday. Holding full position of shares and not touching the call options.
Comment:
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