Biotech2010,
I appreciate your fundamental knowledge of GALT, it helps m to understand it better, Can I ask you to clarify a few things for me. Did you say GALT is still in Phase 1 trials? Isnt that early? don't they have still to do Phase 2 and 3, and then get FDA approval? I understand theres things like fast track designation, or orphan drug status that can speed up an approval process. etc....but what would be your time frame for GALT to 'hit the jackpot' in this process? days? weeks? months? years?
Next, is there some big Pharma looking to buy GALT any time soon. ? whats that time frame?
Next, did this soaring rocket blast in price happen because of GALT's association to other biotech stocks that went soaring, ? is that all that happened fundamentally the other day?
I know they got a patent approved. but that cant be it right?
I guess I need these questions answered before I can continue, but I'll try to finish my thoughts.
If GALT just went hyperbolic because of only some esoteric association in the minds of traders to some other stock,like a piggy back bubble....then that is a Pure Speculation price move.
IF there is still a long way to go time wise before GALT gets bought by Big Pharma, then this hyperbolic blast is pure speculation driven. and If GALT is still a long way from phase 3 success and FDA approval....then this hyperbolic blast is a parabolic disasterous plunge waiting to happen.
As soon as price stops rising, which could be soon, then it will get sold back to sane levels technically.
The 14 moving average , something institutional traders look at , is at 14 dollars.
There is a big Gap there, around 13.20 to 14.20
The technical picture is that GALT just made a double from 8.50 to 17. Traders sell a double. That's why it has plunged back to 15..... so far.
There are key indicators like the Bollinger Band top that is at 12.50. This is where the parabolic plunge could fall to fast if that was to happen.
That's just the basics of the technical picture.
Unless there is some kind of fantastic fundamental news that makes this rocket blast hold support here at 15.... we could very well see a plunge back down simply because the buying dries up. If price fails to rally back to 16 and above, odds are it will fall to 14 soon.
When you proclaim that Technical analysis for GALT is now irrelevant, I think that is very short sighted and irresponsible.
IF this blast off didn't happen for true fundamental reasons, then it is a bubble speculation move, far ahead of itself fundamentally, which makes it very possible a price collapse could bring GALT back down toward the 14 /13/and 12.50 support zone.
Its already fallen from the 17.88 top to 15
GALT might never see 8 dollars again, but it could see 12.50
Imagine me saying that Fundamental data is useless. the fundamental story is meaningless.
To say that the technical price action is meaningless, is truly irresponsible in my view.
Maybe GALT will stay up above 15 dollars forever now, I cant predict that. But the technical picture IF there is no rational fundamental reason for this blast off, the technical picture says Warning, beware of a big parabolic pullback. Target area may be 12 -14 dollars . 13 in the middle. 11 is possible.
If Institutional players have bought in heavily, ok, that's good fundamental news, If there is a vast increase in publicity now, that might mean something. Maybe it will mean that GALT will form a new base at 13 dollars. we shall see how it all plays out.
Good trading and investing to all.
AI
