Chart of the Day: It looks like Chimeric (ASX:CHM) is tempting some technical buying
Health & Biotech
Health & Biotech
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Chimeric (ASX:CHM) joined the hallowed ranks of the ASX on January 18, and enjoyed strong price action on its first couple of days of listing.
It hit an intra-day high of 44c on day 3, after closing at 29.5c on day 1, all relative to a 20c IPO price.
Since then the company has been easing back toward prices just south of 30c, as speculative money moves through and around the market in a phenomena that our friend Kevin Muir of Macro Tourist fame has described as “the rolling bubble framework”.
Three trading days in the last four Chimeric has touched an intra-day low of 28.5c, before rallying to close each of those days above that level, and so we think there are some intra-day supports at that level, at least for now.
With some fair dinkum exuberance elsewhere in the biotech sector, one would imagine it would not take much for Chimeric to again move to the front of speculators’ minds should they manage some news that captures the market’s attention.
A close back up above 30c would break the short term down-trend and may also usher in some technical buying.
Having said that, we are holders across all accounts for the medium to longer term, as we seek the type of outcomes that have made Mr Paul Hopper so revered in the industry.
Not to mention the resplendent pink cardigan in which he is frequently clad when pictured.
Chimeric is looking to apply an amino acid peptide sequence, first isolated from deathstalker scorpion venom chlorotoxin, to assist in the targeting of GBM tumour cells.
The severity of the condition aside, it is not often one has the chance to mention the deathstalker scorpion in any context, let alone a constructive one.
Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.
Collette Capital only makes services available to professional and sophisticated investors as defined by the Corporations Act, Section (s)708(8)C and 761G(7)C.
Learn more at www.collette.capital.
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