1 Biotech Stock Looking To Make A Big Move
MoonLake Immunotherapeutics (MLTX) is the latest stock to give us a setup that works well within our system and you’ll see why once you take a look at the chart in the video below.
In perhaps one of our cleanest setups in recent memory, MLTX has formed a very well consolidated range between two key levels. For support, we have a line drawn in the sand around 50 and as for resistance, we are looking at the stock rising above its recent high of 63.4.
As always, these levels provide us the roadmap to our trade and what we can reasonably expect from how the stock should perform given where price is currently sitting in relation to these levels. One the one hand, MLTX got a nice bounce last week from that 50 level which could very well mean we are back on our way toward at least 60 in the near term.
One thing to always keep in mind when we are talking about a support or resistance level is where a candle closes in relation to these levels. For example, for some indication that the stock would be headed higher after a break of 63.4, we would ideally want a candle close above that level in order to signal enough buyers have stepped in to make this move more likely.
None of this is to be considered without knowing what the rest of the market is doing, however. As of late, the market has looked anything but stable. We’ve gotten some bullish moves, but none with a tremendous amount of follow through giving us any indication that the bull run is back.
If we get a market that decides to push higher, then MLTX could very well be off to the races. If not, then just the opposite could be in the future for MLTX. Be sure to keep a close eye on these levels, as well as on what the rest of the market is doing as well.
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