05/08/23
Whenever I see a bottom out like this on a company with a tiny float, it gets my attention.
The smallest amount of volume can send it flying – and the one I am watching is sneaking up with other low float companies in the same industry – and it has the potential to go parabolic.
I am talking about biotech company Windtree Therapeutics, Inc. (WINT) – and I think it deserves at least a look, so let’s do it.
Today’s chart is a glimpse of the hourly time frame.
When you’re looking at stocks that are capable of becoming extremely volatile, you have to look at higher time frames until the stock picks up the volume.
The daily and 4-hour are good for setting swing targets while I prefer the hourly for short term targets.
The 15-minute? Too noisy.
Let’s get into it…
What I dig about this setup is that the stock gapped down massively from the $5.00 area…
Why is this significant? Shorts poured it on.
And when this happens, they’ll need to cover after bludgeoning the stock…
But there’s a few things to note, so let’s start with the actual price action first.
The blue horizontal box is worth keeping in mind here as a target as this is where a false breakout occurred prior to the stock resuming its downtrend.
That’s around $2.00.
The green horizontal box is the inverse of this, meaning that WINT was attempting to fall further, but failed to do so…
Now, this is the new support, between $1.40 and $1.50.
On the lower chart, the Volume Accumulation indicator shows us that the short selling receded significantly on April 27th which is where I placed the lightbulb icon.
Below this on the TTM Squeeze, momentum has been trending higher despite the bearish trend and is now positive with periods of high compression noted by the yellow dots…
I like buys in the support zone mentioned above with a look to previous highs as conservative targets — $1.84 to $1.99.
But under $1.35 and I’d go play somewhere else…
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