by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
Yesterday, we looked at a Daily Price Chart of Etsy Inc., noting that the stock’s 50-Day EMA was trading above the 100-Day EMA signaling a bullish trend.
Today’s Chart of the Day is a Daily Price Chart with moving averages for BioXcel Therapeutics, Inc. (NYSE: BTAI).
BioXcel Therapeutics, Inc., a clinical stage biopharmaceutical company, focuses on novel artificial intelligence-based drug development in the fields of neuroscience and immuno-oncology in the United States. The company is involved in developing BXCL501, a sublingual thin film formulation of dexmedetomidine for acute treatment of agitation resulting from neurological and psychiatric disorders.
Now, below is a Daily Price Chart with moving averages for BioXcel Therapeutics, Inc.
Back in December 2019, the BTAI 1-Month price crossed above the 10-Month simple moving-average (SMA) indicating BTAI is on a PowerTrend ‘Buy’ signal (circled).
Ever since then, the stock has risen ever higher — especially since global health has become such a massive concern.
When the PowerTrend ‘buy’ signal occurred for the stock back in December 2019, the stock was around $14.61. If you’d bought then, you’d have seen an 178.4% increase.
Now, as you can see, the 1-Month moving-average is still above the 10-month SMA. That means the bullish trend is still in play!
This bullish price trend makes BTAI a good candidate for a call option purchase.
As long as the 1-Month price remains above the 10-month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward so we’ll know the moment the market conditions shift and the stock begins to come back down offering a better buying opportunity in a bullish market.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On April 29th, we highlighted Enphase Energy Inc (NYSE: ENPH), noting that the stock’s OBV line was sloping up.
If you happened to have purchased ENPH shares on that day, you’d already be up 35.12%.
But… if you had purchased the right option contract, you would be up 194.2% in just two weeks’ time!
That’s the power of options.
Editor, Chart Of The Day