Nkarta, Inc. is a biopharmaceutical company, which engages in the discovery, development, and commercialization of natural killer cell therapies for the treatment of cancer. The firm’s product includes NKX101, which is in Phase I clinical trials for the treatment of relapsed/refractory acute myeloid leukemia or higher risk myelodysplastic syndromes, and NKX019, a pre-clinical product, which is based on the ability to treat various B cell malignancies by targeting the CD19 antigen found on these types of cancerous cells.
Take a look at the 1-year chart of Nkarta (NASDAQ: NKTX) below with the added notations…
Chart of NKTX provided by TradingView
NKTX has stalled at the $20 level as resistance (blue) on multiple occasions since last year, three times just in the past four days. If the stock can manage to break up through that $20 mark, higher prices may be on the way.
The Tale of the Tape: NKTX has an important level of resistance around $20. A long trade could be entered on a breakthrough of that level, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $20 area.
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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