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A Post-Mortem on Cassava Sciences

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There are few things in the investment world scarier than owning a biotech that misses the mark. That was the case this morning with once high-flying stock Cassava Sciences (SAVA - Free Report) ). This is a stock that once skyrocketed to $146. A little over three years later, this thing closed the day at $4.30, down 83% on the day.

The cause? It’s Alzheimer’s drug Simufilam did not show a significant reduction in cognitive or functional decline versus placebo in patients with mild-to-moderate Alzheimer’s disease in its Phase 3 study. The good news, if there is any, is that Cassava still has $149 million in cash as of the end of last quarter. The bad news is, they’ve got a strikeout where they were hoping to hit a home run.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Cassava Sciences’ stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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