GTx, Inc. (NASDAQ: GTXI) is having an incredibly strong start to the trading session in the pre-market hours this morning. However, if you go digging for news, you’re not going to find anything. The company hasn’t submitted a press release since announcing the failure of a Phase 2 clinical trial. Today, we’ll talk about:
- Why the stock is headed up;
- what we’re seeing from GTXI; and
- what we’ll be watching for ahead.
GTXI Gains Are Purely Technical
As mentioned above, GTx is having an incredibly strong start to the trading session this morning in the pre-market hours. However, the company hasn’t released any news since the September 21st press release announcing the failure of a Phase 2 clinical trial. So, what’s the deal? The gains seem to be purely technical.
Just before the close of trading yesterday, the company broke through a key resistance level at $1.40 per share. Due to the recent Phase 2 failure, the company had fallen dramatically and started to trade flat with a high percentage of short interest. This set the stock up for a short squeeze. So, when GTXI broke through resistance toward the closing bell yesterday, it triggered a short squeeze, causing shorts to abandon their positions and leading to massive after-hours and pre-market gains.
Nonetheless, it’s important to keep in mind that with no fundamental news to back up the strong gains seen on the stock, chances are that the gains aren’t going to last long. So, if you’re going to get involved in this one, be sure to do so with caution.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that it’s important to keep a close eye on technical data. After all, technical breakouts like this one happen all the time, creating opportunities for investors and traders alike. Nonetheless, with the short squeeze taking hold, the stock is screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (4:33), GTXI is trading at $2.18 per share after a gain of $0.77 per share or 54.61% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA finance team will continue to keep a close eye on GTXI. In particular, we’re interested in following the company’s efforts in the breast cancer space as their candidate in the space is showing some promise. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!