Sometimes I go back to the well.
By that, I mean that sometimes I trade a stock multiple times if the stock continues to offer me opportunities.
This is currently the case with MCRB.
I recently closed out a successful swing trade in the stock. However, I am not done with it just yet.
With fresh news and the stock gaining momentum, I am keeping a close eye on the name for possible re-entry.
Before I go over my trade and updated plan, let’s take a quick look at Seres Therapeutics Inc (MCRB).
According to Yahoo, MCRB is a microbiome therapeutics company that develops bacterial consortia designed to functionally interact with host cells and tissues to treat disease.
The stock is down 56.08% year to date; however, it has staged a comeback in recent times, with the stock up 67.86% on the quarter and 76.97% on the month.
The stock closed the day up 22% yesterday after the company announced that the first patient had been enrolled in the companies Phase 1b study of SER-155, an investigational microbiome therapeutic to reduce the risk of antibiotic-resistant bacterial infections and graft-versus-host disease.
Key Stats, per Finviz:
Market Cap: 935.37M
Float: 83.54M
Average Volume: 1.91M
Short Interest: 10.64%
Interestingly, MCRB has an average price target, set by analysts covering the name, of $20.57, which is, of course, much higher than where the stock closed yesterday.
My Previous Swing Trade:
On November 10th MCRB broke out of a daily consolidation and experienced an impressive increase in volume.
That day I shared my thoughts and trade plan with my members, saying in the Biotech Breakout Mid-Day Watch List:
“MCRB is now approaching a big gap area from $10s to near $20. I am looking for possible entry around $8 for a run at $10 to $11 area with a stop around $7.”
I bought MCRB, on November 10th, in two stages and had an average entry price of $8.44.
I sold the long position in two stages.
My first sale came on November 18th. I sold at $8.68.
I closed the position on November 29th at $9.22.
Updated Trade Plan:
Even though I never sold at $10, that was ultimately a successful swing trade that required a lot of patience and staying power.
With that being said, though, I’m not done with this stock just yet.
The stock is back on my radar.
As I mentioned yesterday to my members in the Biotech Breakouts Trade Plans, I am watching the stock closely as it approaches the $11 gap area.
If the stock can base over the gap area, I will look to get long for a possible swing trade, targeting $14 – $15.
The gap goes up to $20, so if the momentum and volume persist, my target area might be updated if the trade plays out according to plan.
