Immunogen Inc. (IMGN) is the next stock on our options trading watchlist and when you see the chart, you’ll quickly see why. A simple and straight forward setup is the type of trade we look for when looking through countless stocks to find for our readers.

For IMGN, the chart has given us another opportunity to play a bounce, and if that bounce doesn’t come, we have the downside we can also play, should the level we are watching fail. The key level to have marked on your charts is 14. As you can see by looking at the daily timeframe, there has been a solid level of support developing here.

After a large gap up a few weeks back, the stock had reached a 52-week high of just over 20. Should the stock gives us a bounce at this level, we could be looking at prices reaching back toward 16 on its first stop. From there, there is not much resistance until we see 20 again.

Now, if the stock were to reject anywhere or simply breakdown on this 14 level, there isn’t much support that would buoy the stock from falling further, perhaps even as far as prices not seen since before the gap up. One thing is for sure, this 14 mark is a make or break for the stock and any traders that have a bullish bias.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.