Thursday, January 14, 2010

NVAX Novavax---Just chart

NVAX- Novavax-
* I have not looked at any news or any fundamental thing about this. Someone asked me to look at this stock, so I just looked at the chart.
* I hate bio-tech small caps. I don't know who would consistently makes money in them.... The FDA stuff and phases of approval and cash burning, prospects of the approval and billion dollar prospects on paper.. I think on average it is better to pass them for people who are not related to medical field. I think these stocks are good for insiders...My point is: be very careful.

Now let us talk about the chart/prices. From the low of 54 cents last year, it jumped to a high of 7.79. Then started crashing with a text book style Island Reversal. Only recently it popped out of its resistance line and today it is touching it back.
Moral of the story: Can be traded at current price of 2.69 with a very very strict stoploss at 2.50. Mind well that stoploss sometimes are useless for small caps and biotech in particular- because the price can just open in gap with a 50% drop too.
So for weak hearts, it is better to forget about this stock and the chart.

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