What's the business?
Curis Inc is focused on the development of first-in-class and innovative therapeutics or the treatment of cancer. The company currently has three drug candidates in development.
What's going on?
By 9th December, the stock jumped nearly 420% in 2 days over encouraging signs in one of the early trials. The market has been absorbing that jump ever since.
What does this mean?
Over the course of 17 trading sessions, the ticker has had 7 inside bars, along with fake breakouts and false breakdowns (trapped shorts) as well. 31st Dec saw a bullish close near the highs.
Why should I care?
For your trade: a strong break-out candidate
Although nothing is certain in trading, we feel that $CRIS has all the hall-marks of an imminent breakout. We need to see a break above 8.35 and on the day of the breakout, would prefer it to close the day above 8.35.
Therefore, we recommend the following criteria to help you manage your trade:
|Stop Loss:||$ 7.30|
|Initial Profit Target:||$ 9.80|
For your risk: an attractive risk / reward ratio
|Likelihood:||6 / 10|
|Risk / Reward Ratio:||1|
|Earnings Date:||2nd March 2021|
Please be aware that being a biotech stock, risk needs to be managed properly, and the stop here gives sufficient room for an explosive spurt when this breaks out.
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