What Makes This Trade Great: $REPL’s Breakout Move

What Makes This Trade Great: $REPL’s Breakout Move

Nov 22, 2024


By Barrie Einarson

Hey, traders, Barrie Einarson here! Let’s talk about $REPL (Replimune Group, Inc.), the stock that’s been making waves in the market with an impressive breakout. Whether you’re a technical analyst or just love a strong catalyst, $REPL delivered the goods.

The Catalyst: Big News, Big Moves

$REPL skyrocketed by an astounding 44.71%, climbing to $15.99 after announcing the submission of a Biologics License Application (BLA) to the FDA for RP1, an oncolytic immunotherapy. This therapy, combined with nivolumab, is aimed at treating advanced melanoma in patients who are anti-PD1-refractory.

Even better? RP1 has been granted Breakthrough Therapy Designation, which means the FDA is fast-tracking its development and review. That’s the kind of catalyst that gets both traders and investors excited.

The Chart: From Breakout to Consolidation

This massive move wasn’t just about fundamentals. On the technical side, $REPL’s breakout from consolidation showed strong momentum, with buyers stepping in aggressively.

Key levels to watch:

  • Initial breakout at $15.00, supported by high volume.
  • Resistance forming near $16.50, where profit-taking started.

Analyst Support: The Bulls Are Watching

Analysts are backing this move with increased price targets.

  • BMO Capital raised their target to $18.00, emphasizing RP1 as a pivotal milestone.
  • H.C. Wainwright also reiterated a Buy rating, setting a target of $17.00, citing promising clinical results.

Lessons from $REPL

  1. Follow the News: Major catalysts like FDA filings can create explosive moves.
  2. Watch Key Levels: Look for breakout zones and areas of consolidation to plan your trades.
  3. Momentum is King: When news and technicals align, the setup often delivers.

What’s Next for $REPL?

If $REPL can maintain its momentum, the next few sessions could be very interesting. Watch for follow-through or any pullbacks to retest key support levels like $15.00. With the FDA’s Breakthrough Therapy Designation and strong fundamentals behind it, this stock could have more room to run.

Keep your eyes on it, and as always, trade smart. I’ll see you Monday with more insights!