NLNK Newlink Genetics All Time High Biotech Stock – Bullish vs. Bearish Scenario

by Olivier on March 17, 2015

Here’s another constructive looking Biotech stock I recently mentioned on social media. NLNK – Newlink Genetics is trading at an all time high. If you are a regular reader you know that this is a very bullish situation. Buyers are in control.

With NLNK I see the potential for the stock to gap up above the blue resistance line drawn into the chart. If that actually happens I would consider it to be a measuring gap. Often measuring gaps occur exactly at the mid-point of a move. In NLNK’s case that would be slightly above the 50$ mark which would open up the possibility for NLNK to reach the 100$ “century mark” at some later point in time.

As anything can happen with Biotechs, it is best to always keep in mind the bearish scenario. In NLNK’s case, the former all time high price area would serve as resistance and stop a further advance. The most likely scenario for NLNK would then be to move down to test weekly MA 30 support.

Conclusion: As I’ve outlined in my XON Intrexon – Superstock post, Biotech is the strongest sector around. So that’s the pond I want to fish in. The reason is simple: ‘In uptrends, surprise moves tend to be to the upside’. My job as a trader is pretty simple: Find strong trends and expose myself to those strong trends.

It’s not about smarts in this business. It’s about working with drive, ambition and tenacity, even when your results have been truly awful and you just don’t feel like it. Most human beings don’t do this. The great traders reject failure and overcome pain. – Charles Kirk


Investing in your education always pays. Learn how to read chart patterns like a pro! Tischendorf Letter Premium:

Previous post:

Next post: