As observed this week Biotechnology Stocks Are On The Verge Of A Giant Breakout. This will become one of our important market forecasts especially one with impact in 2020. We will provide more detail in a dedicated biotech 2020 forecast. In the meantime we want to share a tiny biotech stock tip. Advaxis has a focus in oncology which is a sector that is truly heating up right now. Some may argue that this sector obviously is heating up because it lost 99% of its value in the last 5 years which is absolutely true. But as said in the past we love sectors that have crashed after they stabilized (!) because of their upside potential. Advaxis is looking at an easy 25% gain from current levels after which it will test a breakout level. If the current RISK ON cycle will push its price above 1 USD we will see 2.5 USD in no-time.
Advaxis is a biotech stock with a market cap of $15M. A few months ago its market cap was $5M.
Needless to say nano cap stocks must be treated with an unusually high level of risk management. Never invest more than a few % of investable assets in a nano cap stock.
The entire biotech sector is heating up. It is the best performing sector in recent weeks. Sector strength is what we absolutely need if we want to play nano cap stocks, if not the risk is too elevated.
We see Advaxis move higher to test resistance of its falling channel around 1 USD. If this stock falls back there is time to get out without facing a loss. However if it rises it might go very fast to 2.5 USD.
We will cover this stock in our free newsletter.