Happy Wednesday to you all! A reminder that the markets will be closed on Friday in observance of Christmas.

Yesterday morning I wrote about my favorite setup for the day and provided a detailed explanation and game plan.

The stock pulled back and made a higher low in the low $0.20s before trading towards my planned target area of mid to high $0.20s.

I’ll review and provide a more detailed overview and follow on for AABB in the near future, gang, but for now, I want to go over a new game plan for a biotech stock that I have traded before.

However, the difference is that I am not looking for an immediate entry. Instead, I am looking for the stock to shape up in the coming weeks and meet my conditions for entry.

Progenity, Inc. (PROG)

PROG, according to Yahoo, is a biotechnology company that develops and commercializes molecular testing products in the United States. 

The stock is down 54.24% year to date and 69% off the 52w high. PROG had an impressive run beginning early October and saw a sharp increase in volume, sustained for over a month.

PROG broke out of a tight consolidation on the daily chart and consistently made higher highs and higher lows, all the way from the breakout over $1 to the 52w high of $6.20.

The stock had fantastic momentum and presented brilliant trade opportunities during that period. 

I got familiar with the stock and its personality during that period and traded it successfully. Here’s a look back at how I went 3-for-3 in the stock.

Recent News:

• December 20, 2021, completes exit from laboratory business with the sale of affiliate lab.

Key Stats, per Yahoo:

Market Cap: 402M

Float: 96M

Short Interest: 14.32%

In the coming weeks, I will be keeping tabs on the stock and looking for a few conditions to be met before I consider going long.

Firstly, I would like the price action to firm up. 

Currently, the stock is beginning to firm up and base over $2. However, the price remains below critical MAs. 

I would like to see the stock continue to hold over $2 and then proceed to base over 200d and 20d MA. 

I like how the critical MAs are converging and tightening near the current share price.

I would like the volume to break out of the past month’s range to think about a possible entry.

If the stock can break out of the daily consolidation and confirm a higher low on the daily chart with an increase in volume, I might look to get long with a stop placed near $2 or the low of the consolidation.

As of right now, I would be targeting $3.50 – $4 as that is a previous area of resistance.