VRTX trade ideas
(VRTX) Vertex - Upside potential ahead of Earnings releaseVertex is now at levels close to those of Dec'19. Meanwhile, revenues increased +60% QoQ for Q3 2020 and EPS increased + 20% (also QoQ for Q3 2020). Operational cashflows have improved as well. If expected annual earnings are confirmed, Vertex confirms its upside potential and has also a positive outlook ahead as a result of the current environment.
$VRTX - 1D TA - Potential ReversalVRTX gets getting beat down by earnings but if this support lines hold true this was reverse and has a huge gap to fill.
Keep in mind this in a Daily time frame and this will not happen over night (if it reverses).
PS> Cathy Wood continues to buy VRTX so something could be coming.
Do your own DD, this is not financial advice, only my idea.
VRTX Gap Fill Play - Bullish- Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis.
- Target Price: $292.00 by CreditSuisse Oct 29, 2020 with multiple buy ratings by different analysts
- Recent Drop from failed study of VX-814 for patients with ALPHA-1 ANTITRYPSIN DEFICIENCY, but still one more study going in same target area and fundamentals of other revenue makers intact.
- Price entering the gap from that day's drop.
- Trends of more insider buying since the drop and stock buy backs. Signaling that the stock is undervalued.
- Bull flagging right under the gap.
Key Level: $232.41
Price Target: 269.93
ATR: $6.60
Play:
Bullish Gap Fill
Buy the Dip under the key level to scale in
Use $232.41 as inflection point.
Look for breakout with increased volume
Price Target: 270
Under $224 will invalidate
Pull Back/Bottom Fishing Rising Wedge/Head and Shoulders H&S with a bearishrising narrowing wedge = TROUBLE
Bad combo
OUCH!
From looking at monthly and weekly candles, looks like this one may pull back a bit more
NV is very high on this one. Short interest fairly low considering. I guess the shorties did not catch this pattern on time. Short interest was up 12% today
No recommendation/just an observation
VRTX Buy at 285.67 with profit taking at 382.73VRTX is basing below the 10WMA and that is a big negative. The positive of this is that the volume action below the 10WMA is drying up, which means that there is a quiet consolidation period that is going on. If this consolidation period starts to show price action that shoots above the 10WMA then there is a potential buy. The 1st buy might be at 285.67 with the 2nd one at 306.18 assuming they are both confirmed by high volume action. VRTX can break out at any point because the minimum 5 weeks for a base has been met. Fundamentals are great as shown below.
Yearly EPS
2018: 4.08
2019: 5.33
2020: 9.72
2021: 11.26
Quarterly Sales
Sep-19: +21%
Dec-19: +62%
Mar-20: +76%
Jun-20: +62%
