The Market overall really got crushed today (More than I expected) and even though my pick was up, I didn’t get the price I wanted, so it’s made me reconsider buying something that may be getting overextended.
While I like the upward trend in FRED and I really like that it was up on a down day, we crossed above 70 on the RSI line and the history from the last 6 months doesn’t show good things when that happens…
Let’s try something else:
Corbus Pharmaceuticals Holdings Inc (CRBP) has made a habit of bouncing near $6.40. With a close of $6.52 today, I think we are getting ready for another bounce. What I really like is that it respected this resistance point, even on a day when the rest of the market dropped 2%+.
I want to see this hold this support level into the open so if it looks to be opening above $6.40, I feel confident enough to buy in. If you look at the daily chart, it bottomed out in the morning and started to move up from that low into the afternoon. I see this as a positive trend. What I don’t want to see is a gap up into the open. If this happens, I’ll probably set an order and wait/hope for a better price. If it gaps down significantly, then the trade is off…back to the drawing board.
I marked the recent high of $7.75 in the chart above. I will be selling well before this point but I this is the next strong resistance point.