The clinical-stage immunotherapy company that is developing a new generation of T cell therapies for patients suffering from cancer, Tcr2 Therapeutics Inc. (NASDAQ: TCRR) seems to be getting ready for a price bump in the short-term as per the latest charts.
Bullish Move – Chart Indications
#1 Channel Breakout: As you can see from the daily chart, the stock was trading within a downtrend channel during the past several months. This is marked in purple color in the daily chart below. The stock had typically taken support at the bottom of the channel before bouncing back. The stock has currently broken out of the downtrend channel, indicating possible bullishness.
Daily Chart – TCRR
The daily chart shows that the stock has also broken out of a small uptrend channel which is marked in pink color lines.
#2 Price Above MA: The stock is currently above the 50-day as well as 200-day SMA, indicating that the bulls are currently in control.
#3 MACD Above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color).
This indicates a possible bullish setup.
#4 Bullish ADX and DI: The ADX indicator shows bullishness because (+DI) is greater than (-DI), and ADX has started rising from below both (+DI) and (-DI).
#5 Above Support Area: The stock is currently trading above a long-term support area, which is marked in green color dotted line. This is a possible bullish indication.
#6 Downtrend Broken: The weekly chart shows that the stock has broken out of the prevailing downtrend. The downtrend line is shown in pink color. This is a possible bullish indication.
Weekly Chart – TCRR
#7 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the weekly chart. This indicates bullishness.
#8 Bullish MACD: The MACD line is above the signal line in the weekly chart as well, indicating a possible bullish bias.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for TCRR is if it corrects to the level of 200-day MA at around $13.70. However, for those with a higher risk appetite, you can purchase half the intended quantity of shares of TCRR above $17.00.
TP: Our target prices are $20 and $25 in the next 2 to 6 months.
SL: To limit risk, place a stop loss at $11.20 (for entry near $13.70) and $15.40 (for entry near $17.00). Note that the stop loss is on a closing basis.
Our target potential upside is 18% to 83% in the next 3-6 months.
- Entry near $13.70: For a risk of $2.50, our target rewards are $6.30 and $11.30. This is a nearly 1:3 and 1:5 risk-reward trade.
- Entry near $17.00: For a risk of $1.60, our target rewards are $3.00 and $8.00. This is a nearly 1:2 and 1:5 risk-reward trade.
In other words, this trade offers 2x to 5x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the downtrend channel breakout level with high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
Tara
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