Sarepta Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery and development of RNA-based therapeutics for the treatment of rare and infectious diseases. Its lead product candidate is eteplirsen, an antisense PMO-based therapeutic, which is in Phase IIb clinical development for the treatment of individuals with Duchenne muscular dystrophy. The company is also involved in developing treatments that are in Phase I clinical trials for infectious diseases, including AVI-7288 for Marburg virus; and AVI-7100 for H1N1 influenza virus. In addition, it focuses on developing preclinical research product candidates for the treatment of other neuromuscular, infectious, and rare diseases.
Please take a look at the 1-year chart of SRPT (Sarepta Therapeutics, Inc.) below with my added notations:
SRPT is a stock that can move quite a bit. After finding support at $30 in March the stock ran all the way up to $42. Once it came back down to $30 in April, SRPT then ran up to $47. One more bounce on $30 came in August and that time the stock rallied up to $55. November’s drop took SRPT below $30, and after rallying all the way into January; the stock hit $30 as resistance, as expected. This week the stock has hit $30 again.
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The Tale of the Tape: The $30 level is key to SRPT. A short play could be made at $30 with a stop placed above that level. However, a break back above $30 would be an opportunity to get long on the stock.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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