PBYI a speculative biotech LONGPBYI according to the recent earnings as no earnings nor revenue. This is typical in the biotechnology sector.
This 4H chart shows a consistent downtrend with a couple of minor pullback corrections shown with a Doji followed
by a green engulfing candle but with low volume and the K/D lines of the MACD did not on the histogram.
In the present, the volume pattern shows relatively high selling volume then reversed to buying volume which is above the
moving 50 period average shown as the green horizontal line. Moreover, in this episode, the MACD/Signal lines have crossed
and curled up. The histogram has sent positive after being negative since early February.
I interpret this as being an early reversal now ripe for entry. Just like in nature, the early bird gets the worm.
Buyer beware biotechnology stocks that have market cap based on high potentials are speculative but potentially
offer high rewards. I see a reasonable target as a 50% retracement of the downturn or about $ 3.50 ( this is
less than the upside of some analysts ) PGYI is up 10% today. the train is leaving the station with momentum.
I see a potential takeover or a low float short squeeze.
(See also the link below )
