I’m on the back side of 60, but here’s how I’m trading 47. Check out the squeeze on Forty Seven ($FTSV) (February 14, 2020)


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Forty Seven ( NASDAQ: FTSV ); no that’s not my age, I’m a couple of years older than that. This stock is giving us a petty decent volatility squeeze just looking at it here. The Bollinger Bands are fairly loose when you look at it on a percentage basis, almost 20 percent; I like them at like 5-6 percent so that can be an issue here. But it is really an issue of it not showing up on my scan. But it did show up in the forum, in our trading room, so I decided to take a look at it and this is what I see: I see a stock, obviously, it has run up nicely and wouldn’t it have been nice to be the guy that bought it at $6.00? But I can’t do anything about that.

What I can do though, is look at this stock, analyze it and say, “Okay, let’s see how this stock could trade.” You can see where this was the last high here, so almost $50.00; so $50.00 is really the resistance level for this stock. But the longer the stock trades sideways the less relevant this last high becomes; just because as the stock trades you kind of shake out the “weak hands”, people that aren’t really committed to the stock, they just sell and then gradually others pick it up. Finally, you get this average cost basis that is really, really tight here really, really close to this level. All you need to see is just a little breakout and the stock can really move nicely.

That’s what I am looking for here. I would suggest setting an alert, literally, at 46.05. You set an alert at 46.05 and if that is triggered that means that the stock is up a little bit above today’s intraday high and could be just starting to squeeze to the upside and break out and give you another nice run. It’s a biotech stock, by definition, they’re worthless; by definition they can go to infinity. That’s the wonder of biotech, so this could really work for you.

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