Taking a Position in TRIL

It’s bargain hunter’s paradise for biotech stocks right now. Lots of bios that have had the snot knocked out of them over the last several months are showing signs of turning around (AMPE, GALT, IMGN, and SGMO are just a few examples). If anything, it’s hard to choose which ones to take a bit out of. I’ve already got money in several of them – including those I just mentioned – but another I’m going to put a few dollars in this morning is TRIL (Trillium Therapeutics, Inc.).

The monthly chart, below, shows a stock that is perfectly suited to the AIM style of investing, with huge swings up and down in relatively short periods of time. As you can see, TRIL is at the bottom of its latest downswing and is reading as oversold on the Stochastic RSI and CCI indicators:

On the weekly chart, the CCI has already turned up and Stochastic RSI is rising up from oversold conditions, and the candlesticks are marching upward slowly but steadily:

Finally, on the daily chart we see that the CCI20 has risen above zero (meaning, among other things, that price has crossed above the 20 period simple moving average, SMA, which is generally considered a very bullish move), and is about to challenge the 10-day high of 6.30: closing above that would signal a likely breakout.

I’m planning an entry with a limit order set for $6.30; if that doesn’t get a fill by 10:15 AM EST, I’ll buy in at the market price.

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