Howdy traders, it’s Bryce here.
The Vistagen Therapeutics Inc. (NASDAQ: VTGN) spike from Monday caused a lot of sympathy plays.
And biotech stocks were already hot …
Today we’re going to look at the most recent biotech spiker and the top pattern to use while trading.
A lot of people hear a ticker symbol and they buy right away. It’s a random entry point.
And then they’re surprised when the trade doesn’t work out …
As traders, we have to use patterns to protect our accounts.
There’s no telling how high these stocks will spike or how long. And if we get caught on the wrong side of a trade, it could be disastrous.
Make sure to look at the pattern in today’s letter.
Without it, you’re just gambling …
Wednesday’s Big Biotech
As the market opens on Thursday, I have eyes on Tango Therapeutics Inc. (NASDAQ: TNGX).
It’s a biotech that recently announced bullish earnings on August 7.
Revenue for the three months ended June 30, 2023, was $9.6 million, compared to $5.8 million for the same period in 2022.
For the six months ended June 30, 2023, collaboration revenue was $15.4 million, compared to $11.5 million for the same period in 2022.
Additionally, Tango generated license revenue of $5 million for both the three and six months ended June 30, 2023, as a result of out-licensing a program to another company.
Yesterday the stock spiked more than 140% intraday and held some of those gains into the close.
Earnings winners like TNGX can spike for multiple days if the conditions are right.
That’s why I have it on my watchlist this morning.
If you’re reading this letter a little late, don’t worry.
There are still opportunities if you use the right pattern …
The Best Setups
It’s no secret, Friday is the best day for trading.
That’s when the volatility is highest because traders want some extra cash before the weekend.
It’s a feeding frenzy.
And if you want to capitalize on these unique plays, you need a unique pattern.
It’s Thursday today, so make sure you study the price action and prepare to ride some waves tomorrow.
Let’s surf some big spikers!
See you in the next letter.