INFI Infinity Pharmaceuticals – Biotech Stock With Buyers In Control

by Olivier on September 8, 2014

Here’s a Biotech stock with a big catalyst: INFI – Infinity Pharmaceuticals. The recent news triggered a massive gap up that qualifies as a break-away gap. Needless to say this type of volume is most likely game-changing volume. Technically speaking this simply means buyers are now in control. You have several choices here. You can analyze the stock from a purely technical perspective, identify which group is in control and join that group to profit from the new trend. On the other hand you can go check the news, try to figure out what it means and try to gauge how much the stock should be worth. In this particular case I simply look at the chart. It provides enough information and clues for me to act upon. Overall this is a bullish looking chart pattern that features a catalyst indicating that the tide has clearly shifted in favour of the bulls. Act accordingly. Manage risk. Protect your position.

Click on chart to enlarge:

If there is a sudden expansion in a market that has been trading narrowly, human nature is to try and fade that price move. When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of the expansion. – Paul Tudor Jones


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