CEMI has found support at the 50% retrace of its move to 52 week highs. This is a Covid testing stock, was given price target of $21 on 5/26/20 by Baird (see Finviz) and stock has not reacted. Price now consolidates in a severe falling wedge. Given the angle of the wedge, a resumption of the uptrend should come with a steep upward slope. Price must reclaim the 50 day EMA/$10 level for me to consider a position, I would normally wait for the breakout, but I like the risk/reward at $10. I will likely go for 1/2 position if it can close above $10 on the 4 HR and 1/2 position if breakout occurs. I anticipate the breakout to at least test the recent highs.
-Being a Covid stock, if CEMI breaks out its because the virus narrative is back in play, and the premium placed on Covid stocks will be very high given how integral these companies are to a functioning economy. As I have previously said in my WTRH idea, the market is not exactly throwing these Covid stocks completely away, my opinion is many of them have consolidated in a bullish manner, CEMI being one of them.
-Being a Covid stock, if CEMI breaks out its because the virus narrative is back in play, and the premium placed on Covid stocks will be very high given how integral these companies are to a functioning economy. As I have previously said in my WTRH idea, the market is not exactly throwing these Covid stocks completely away, my opinion is many of them have consolidated in a bullish manner, CEMI being one of them.
