CYCC Percent Gainer - Gap-up on Phase 1 Trial Success

CYCC was a huge gap runner this morning. I was just analyzing how you can possibly enter into the trade of this kind of Gap-up runner.

Running the Percent Gainer around 10:11AM and comparing the data against the 9:58AM extract and I got the following result:

Symbol	Name	Last Trade	Price	Price Change	Percent Change	Volume	Previous  Price	Previous Volume	Price Increase	VOL INCREASE
COOL	PolarityTE, Inc.	16.40 10:11AM EDT	16.4	2.73	19.97	326,188	15.84	287,012.00	0.56	39,176
JOB	GEE Group Inc. Common Stock	6.75 10:10AM EDT	6.75	1.8	36.36	227,002	5.99	113,752.00	0.76	113,250
CYCC	Cyclacel Pharmaceuticals, Inc.	5.87 10:11AM EDT	5.87	2.19	59.55	2,097,690	5.08	293,932.00	0.79	1,803,758

There is a significant increase in 13min span of time. A surge of Volume coming over to the picture. It means there is so much interest on the stock.

THE CATALYST OF THE MOVE.
It is the Phase 1 first in human trial of their CYC065 inhibitor which substantially inhibited growth of lung cancer cell.   Cyclacel's Second-Generation CDK2/9 Inhibitor, CYC065, Elicits Marked Antineoplastic Effects in Lung Cancer by Engaging Anti-Metastatic Pathways. 

THE CHART
At the time of comparison between 9:58AM and 10:11AM data the stock just broke out from the 5.80 former high which means the magnetic price resistance would be somewhere $6.00. This stock just broke out from a 6 weeks Volatility Contraction Pattern (VCP). Combined with the Catalyst of successful Phase 1 trial and possible breakout on $6.00 price line, and a huge jump of volume, there is a very big audience looking at the stock. It is just a matter of where to enter.

ENTERING A TRADE

USING THE ABCD Gearing and Perking of Investor's underground.

As soon as the stock perked up the $6.00 mark wait for the pull back. The pull back went as low as $4.82, just a little above the 4.80 High of the Doji around 9:30AM. Dojis are very significant. In my experience of trading they can be the pivot point of reversals. In this case after that pullback the price started to gear up slowly creating higher lows. Scribing a white line from the previous gearing up we can see that the stock is trying to slow move upward. If we use the ABCD pattern. Our "A" is the $6.00 point and our "B" is the bottom it created at 4.82 then our "C" is the green candle with a volume trying to break the 13SMA(Simple Moving Average) which served as the upper channel in the VCP(Volatility Contraction of Price) . That breakout has a high of 5.03. Another breakout of this new 5.03 high will be our entry. As you can see the price pulled back to as low as 4.89. The second thrust higher surpassing 5.03 with a volume greater than the 5.03 volume is the confirmation and an entry point. Here you can place an order of 5.05 or 5.07 few cents higher than the previous high.  

ENTERING THE TRADE USING MY Support/Resistance/Doji Reversal strategy:

Dojis are very significant in Price reversal. We knew that the 10:00Am price action broke out of the previous high created at pre-market price action of 5.16. The price went to $6.00 but pulled back. The price had jumped already from $3.50 to $6.00 and it is natural that those who had been in earlier will certainly would like to realize their profit. So far the all selling that happened after $6.00 touch down the volume is smaller than 100K shares. So we can say that these are not real selling move but just profit taking. The $5.16 high at the pre-market rally can be a significant pullback rest too because it created a base there. But price usually poke on major whole numbers. The whole number we are looking at is $5.00. If the pullback pokes below $5.00 where will it rest? The usual resting base of a pullback is on major Dojis. The next Doji below $5.00 is the Doji with a high of 4.80. If you place a buy order at 4.85 or 4.90 at this Support line and it gets filled and the price does not continue to drop then you are in a better position than everyone. You just need to get ready to pull the trigger to exit the trade if it goes against you.

Securing an entry like that and setting a Stop Loss at 4.80 which is the lower end of the Lower Highs. is rewarding. As you can see on the next slide the price went as high as 5.80 close to $6.00. Now remember we are securing an entry for a possible breakout on the $6.00. Around 5.80 you can start collecting your first half profit then let the other half ride the breakout if it there will be a breakout.

There are other opportunities of entering into the trade if you have the patience to wait. $5.30, $5.50 and $5.75 are point of entries before the $6.00 breakout. And as you can see the price closed at $6.81 at 4:00PM. Even the After Market the the stock rallied as high as $8.00. 

This might go for another gap tomorrow or a potential washout in the early morning.

If we scrutize this stock with Finviz just to check its Financials, this is the outlook.

 It seemed that EPS Q/Q is highly positive with 42.20%. Only the sales Q/Q that is -25%. This may not be a concern if all the Trials are going to be successful.

The news of April 2, 2017 about their success with Phase 1 Trial for Lung Cancer can lead to an FDA approval and this stock might see additional upside not just $7.00 as per Target by Finviz.com