Can SAVA get back to $100 in the short term?
$SAVA (Cassava Sciences) saw an insane rally in 2021 from $7 to $145 on the hopes that its groundbreaking Alzheimer's treatment will yield promising results never before seen in the history of the disease. Currently there are no Alzheimer's modifying therapies on the market and if the data surrounding Cassava's main drug, simufilam, is accurate then it could be the first of its kind.
SAVA saw a sell-the-news event when it announced its promising results, suffering a 23% drop on July 29. Soon thereafter a Stat News article was released criticizing Cassava's results, citing a group of independent researchers. The stock dropped a total of 55% from highs.
Is this a buying opportunity? Obviously we are largely delving in uncharted territory and financial analysts/traders won't be able to infer whether the science is reliable or not. However, traders know how market cycles largely work. There is often a second wave of optimism after negative news coverage (whether a short report or a hit piece), driven by those who are willing to speculate.
SAVA is showing a bullish harami on the 1D and it has dropped to the Fibonacci golden pocket level, also at the 100 MA where it has routinely found support. This could be a buying opportunity for those who are in the market for a bit of risk. As long as #SAVA is above the 100 MA, I'm willing to hold it in the mid term and will ride the next wave of positive financial/medical news.
Entry: $79
SL: soft SL with manual monitoring if it breaches the 100 MA
TP: $88, $94, $100
SAVA saw a sell-the-news event when it announced its promising results, suffering a 23% drop on July 29. Soon thereafter a Stat News article was released criticizing Cassava's results, citing a group of independent researchers. The stock dropped a total of 55% from highs.
Is this a buying opportunity? Obviously we are largely delving in uncharted territory and financial analysts/traders won't be able to infer whether the science is reliable or not. However, traders know how market cycles largely work. There is often a second wave of optimism after negative news coverage (whether a short report or a hit piece), driven by those who are willing to speculate.
SAVA is showing a bullish harami on the 1D and it has dropped to the Fibonacci golden pocket level, also at the 100 MA where it has routinely found support. This could be a buying opportunity for those who are in the market for a bit of risk. As long as #SAVA is above the 100 MA, I'm willing to hold it in the mid term and will ride the next wave of positive financial/medical news.
Entry: $79
SL: soft SL with manual monitoring if it breaches the 100 MA
TP: $88, $94, $100
Comment:
Hit the first and second price targets already. Would trim my position here by at least half.
