This BioPharma Is On The Rise After Successful Phase 3 Trial

This company recently completed a phase 3 clinical trial, and the stock’s reaction to the news is following along classic bullish pattern.

In addition, the stock’s recent price low creates an even more interesting opportunity.

Cormedix Inc (CRMD) develops therapeutic products for the prevention and treatment of infectious and inflammatory diseases.

On January 17, 2019 CRMD completed a phase 3 trial for one of its products, Neutrolin.

The stock’s price jumped on the news and broke out of a multi-month consolidation pattern.

Before the news event there was a clear resistance level of $1.85 and support around $1.60. On the day of the news event the stock traded as high as $2.26 and as low as $1.63.

As a result, it broke the resistance and confirmed the support in the same day.

This breakout and retracement price action is a common pattern in stocks that continue to move higher. Additionally, it provides traders and investors price levels to that can be used to anticipate when the next move up is beginning and stop loss levels to limit risk.

Here’s how these levels are set up in CRMD.

Since the retracement it has consolidated between its $1.85 and $1.60 level.

This consolidation sets the stage for a second breakout over the $1.85 level, and that is what happened yesterday.

This second break out after holding the prior support is a very bullish pattern.

If the pattern continues CRMD should not trade back below 1.60. Plus, its 50-day moving average is also close at $1.50. Therefore, that would be a good place to place a stop.

The pattern’s trade entry zone is between $1.90 and $2.

The longer-term charts suggest that a successful breakout of the $2 level sets up the potential to run up to the 3.40 level or higher.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily