ATRA Atara Biotherapeutics Extremely Bullish Reaction To Private Placement – ICPT Case Study

by Olivier on July 13, 2015

A few days ago ATRA – Atara Biotherapeutics announced a private placement. The key is how a stock reacts to such news. If your goal is to reach peak performance in trading you pay attention to price and you ignore everything else. The reaction to news and the technicals is all that matters. It is all you need to know. A quick repost of my all time favourite quote that addresses this important subject:

Everything you need to know is right there in front of you. – Jesse Livermore

Here’s the chart of ATRA I posted on Twitter earlier today. It shows all the ingredients of a super winner in the making.

  • Great reaction to news.
  • Trading near its All Time High
  • Bullish overall pattern pressure

Click on ATRA chart to enlarge:

ATRA Atara Biotherapeutics Bullish Biotech Stock Trading Near All Time High Patter Pressure Technical Analysis

I used the term ‘Case Study’ in the headline. Here’s why: ATRA reminds me of a super winner of the past. ICPT – Intercept Pharmaceuticals. ATRA is displaying similar characteristics.

ICPT + ATRA Reaction to News Of Private Placement Technical Analysis Case Study Chart Pattern Pressure

As you can see in my chart annotations the reaction to news is key. ICPT shot higher immediately after the private placement was announced. It went on to become a super winner. ATRA’s reaction to its private placement strongly reminds me of ICPT.

Conclusion: Biotech is still the only game in town when it comes to producing phenomenal results. The key to success is Fishing in the right pond.

ATRA company description from Yahoo finance:

Atara Biotherapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapeutics for the treatment of muscle wasting conditions and oncology. Its lead product candidate is PINTA 745, which is in a Phase II clinical trial for the treatment of protein-energy wasting in end-stage renal disease patients. The company is also developing STM 434, a targeted therapy for ovarian cancer and other solid tumors that is in a Phase I clinical trial; and a pipeline of product candidates that are in preclinical development. Atara Biotherapeutics, Inc. was founded in 2012 and is headquartered in South San Francisco, California.

Successful trading is about consistently doing the difficult thing so often that it becomes second nature. – Richard Weissman


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