Mixing Colorado, the growing Pot trade, the booming biotech sector, a healthy degree of speculation, and technical analysis, we have the *trade of the day for near, medium, and long-term traders/investors.
The company is Zynerba Pharmaceuticals, Inc., with ticker symbol: ZYNE.
Founded in 2007 and headquartered in Devon, Pennsylvania, ZYNE is a specialty pharmaceutical company focusing on developing and commercializing proprietary synthetic cannabinoid therapeutics formulated for transdermal delivery.
On the near-term trade, ZYNE has been trading tightly in a positive-sloped upward trading channel for the better half of 2016 (since April/May). Most recently, shares bounced predictably off of its lower bound in late November/early December at the ~$12.75 handle. In it’s current move higher, ZYNE should make a continued run to the ~$17.75 handle given 2016’s channel trajectory.
From there, ZYNE could dance around the $17.75-$18 threshold for a while as it tests medium-term technical resistance dating back to mid-October of 2015.
Provided the broader markets remain strong both from a macro and biotech perspective in 2017, ZYNE’s trading channel should eventually bring shares to it’s long-term resistance threshold of ~$21, representing a potential ~35% gain from current levels.
*The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.