Monday premarket, if people are panic selling even more which is likely with a lot of lockups people panic sell stocks/shares in the pre-market that day before the insider lock it happens because once the market opens then the insiders are allowed to sell their shares so if this thing dips pour in the pre-market on Monday, that is going to be the area to absolutely load the boat on this stock, that is what most traders are going to be looking to do. The absolute lowest that analysts can see is this stock going to that $18 level of support without a balance.
It is going to have to bounce in a second because of how oversold it is. So, analysts expect a balance on Monday to happen at market open, if it does dip more in the pre-market on Monday that isn’t a place to load up. Anywhere in the low eighteens, analysts think that is where you add heavy. Even if it’s just a day trade, take profits once the market opens and if that pop happens like expect to happen, traders will be targeting a reversal and gap bill up to 20.8 to take profits and will look to be adding especially if it dips more in the premarket on Monday and if you want to play save a good place to have a stop-loss is under that $18 level support to manage your risk but yeah that’s analysts thesis on it. Analysts think we had a big bounce back earlier in the week.
Sigilon Therapeutics, Inc. (SGTX):
This is Sigilon therapeutics, ticker symbol; SGTX. So, this is a pretty recent IPO that happened about seven months ago. Sending out about a $320 million market cap and it is down massively from highs. This is a technical setup reversal play. First off from its chart we can see that this stock is essentially sold off. Ever since it was a hot IPO and took off to a high of $54, it’s pretty much been on a slow sell off since then and hit a low of $9 per share. During the majority of the selloff, there is close to no volume and now we see volume coming in and the stock is forming a base here and looks primed for reversal.
It is also breaking out of this falling wedge formation but usually means a reversal is on deck. So, there’s no real reason that this stock did end up selling off, there’s just not much that has happened with the company but this company does have some big things going forward. What they do is, they work on cell therapies for diabetes. This stocks looks great for reversal and also they have some big backers, Eli Lilly ticker symbol LLY, which is over $200 billion market cap. One of the largest bio companies. They are backing this company, they own over 10% of shares and that they value the company at over $18 per share.
This stock is currently sitting at $10 per share. With this $63 million deal as well, this could turn into pay for Sigilon up to 410 million for reaching development and commercialization targets and because Sigilon therapeutics is newer to the market and not making money yet. Biotech companies they usually start up very slow, they have a big cash investment that they play off of. Sigilon has a very healthy amount of cash to debt. They have over $178 million in cash more just 36 million in debt, which once again right now this is a pretty small market cap company just over $300 million. They have over half of that in cash Eli Lilly invest them at over $18 per share and the company has those targets, they can get that investment of over $400 million like we just talked about.
So, there’s a lot of things going on for this company, the chart is prime. So, what analysts are looking for in this stock is a further reversal from where it is at now targeting closer to that $15 range after this breakout of the falling wedge. With the volume coming in, we’re fine getting a reversal and uptrend off this level. Analysts think we see run towards $15 that’s most of the trader’s target on this trade and is going to have stop a loss below those recent lows at $9 per share. So, that’s the risk reward that traders are looking at on this trade.
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