Don’t have a heart attack, but this biotech stock looks like it’s popping. Check out MyoKardia ($MYOK) (July 02, 2018)MYOK
Today, this is one stock, MyoKardia ( NASDAQ: MYOK), that I took a position in; it actually took me a while to get it. It is a stock that has been on my Watch List. I was actually going through my Watch List earlier today looking to ditch a bunch of stocks. I had this thing on the list and it was never really compelling at all. I will admit it, sometimes it is better to be lucky than good but a lot of times it is best to be both.
I was just looking around and I see this stock (look at the 5-minute chart), it was right about here. This was squirting above $51.00. I’m looking at this and I am looking at the news, I think they had some kind of drug that they just started their first trial in, I wasn’t exactly sure what it was. This is a biotech stock and what rhymes with biotech is wreck and so I always trade biotech really, really carefully. I just wanted to make sure there were no earnings there; I took a small position.
My point is, I was looking at this and these Bollinger Bands had been fairly tight. The stock was now trading above and so I decide that I am going to go ahead and buy some stock. And I did right around in this area somewhere. And then the stock ultimately moved a little bit higher. But here is my point: I don’t think it is too late for you to buy this stock. You can see, on a relatively low volume day, this stock traded on above average volume and it also closed very near the high of the day. The high was 52.35, it closed at 52.25. You do the math; according to my math, that is 10 cents. Right into the close the stock continued to trade higher.
So this is your trade: For me, I have my stop right around here, just a little bit below $50.00, 49.90, something like that. That is actually kind of a lose stop to begin with; but I am okay with that because the way this stock is trading I think I have got to give it a little more room. Just looking at the chart this thing has the potential to go up and test $60.00 if the volatility breakout continues. And $60.00 on a 52.25 stock, that is a pretty good percent return. I like this pattern; I wanted to pass it on to you and hopefully give you some money to maybe buy some fireworks on the 4th of July.