VTYX falls to support on private offering Biotech LONGVTYX- Ventyx Biosciences, Inc. (“Ventyx”), a clinical-stage biopharmaceutical company focused
on advancing novel oral therapies that address a range of inflammatory diseases with significant
unmet medical need, announced today that it has entered into a stock purchase agreement for
the sale of 11,174,000 shares of its common stock at an offering price of $8.95 per share in a
private placement to certain qualified institutional buyers in a bearish news catalyst on March
7th. I have recently uploaded my idea for VTYX on February 27th. Any traders who bought
at 7.00 based on that idea may have sold on March 6th for 11.00 and achieved a 55% return in
less than two weeks. On the 15 minute chart, VTYX has pulled back to support from the news
catalyst. It has settled on the first upper VWAP band where it also found support in February
after the post-earnings bullrun and again on February 27th when I uploaded the prior idea.
VTYX is now at the bottom of a megaphone pattern ( broadening wedge) reflecting increasing
volatility. The predictive algorithm from Lux Algo shows a forecast consistent with price action
about the confluence of the support trendline in green and the first upper VWAP band in thick
blue while the regression line and then predictive algorithm derived from it is the black line.
Biotechnology especially small caps are among the hottest sectors at this time. This one
went from cold to very hot and is now lukewarm while readying another bout of bullish
momentum. I will revest capital from the previous 10 day trade in a long position
expectant of a target of 11 or about 35-40% upside from current price.
