Watch RARE

Today there was something in the news from the pharmaceutical company RARE. They just had good results from a stage 2 test:

Ive worked at a pharmaceutical company and I know that there are more stages to get through with the FDA in the drug approval process and it takes a while and on top of that, the drug could be rejected by the FDA at any point during the approval process. Nothing is a lock. Especially at the stage 1 and stage 2 trials. And really, if you read the above release, is the study results actually that good or astounding? No.
But the thing is this stock has momentum and it does something particular as it ratchets upward:

You can see that the stock in the different square boxes I marked has a pattern. There is a good news event or positive event for the stock, it climbs, it stalls out at the top of its channel and it drops again.
Todays news is fairly good, but since the stock is a long term climber people are jumping on this news. As well as a firm that initiated coverage which is about the same as a couple of kids standing next to a pile of kids on top of a football and deciding to jump on top of the pile.
We will watch this stock and I feel that 1. Due to the news today and 2. Due to the initiated Market coverage this stock is going to climb a bit then exhibit top candles. Thats when I am going to come in with a put. Ive got my eye on this one.

Tradinginsider