Synthetic Biologics Inc (NYSEAMERICAN: SYN) has seen incredible gains in the market as of late. While the company has released no recent news, there is a reason for the gains. Unfortunately however, I believe that we’ve reached the end of the line here. Nonetheless, there is another opportunity out there that may make SYN gains look like pennies. Today, we’ll talk about:
- Why the SYN run is done;
- where the next big opportunity lies;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
SYN Has Been Gaining On Technical Cues
Synthetic Biologics has been running in the market as of late. In fact, just a few sessions ago, the stock gained more than 100%, and after a correction, it is still trading more than 50% above where it started. The truth is that no news had to do with these gains. Ultimately, gains in SYN were purely technical.
The stock had a low float and had been trading flat for months. When a stock like this gets interest out of nowhere from few investors, we tend to see gains. These gains then excite traders, leading to technical indicators suggesting a breakout. Well, that’s exactly what happened. Before the big run, a relatively small gain caused indicators to light up, exciting traders and sending SYN through the roof. Nonetheless, these technical runs with no news behind them don’t tend to last long. So, I’m expecting that the gains we’re seeing today are the last push toward the top that we’ll see from the stock in the near term.
The Next Big Opportunity
While SYN is running out of steam, there are always new opportunities out there. An interesting one is Cellectar Biosciences (NASDAQ: CLRB). The company has the same technical picture that SYN had before the run. However, there is a key difference. As outlined in a post earlier this morning, we are expecting a data readout any day from CLR 131. If that readout is anywhere near as positive as previous data, it’s going to lead to gains. Combine this factor with a low float and no recent movement and we’re going to see indicators lighting up across traders’ dashboards. I believe that this will lead to the same type of monumental run that we’ve seen from SYN. The difference however is that CLRB has real news that could help it to maintain a decent portion of the gains to come.
What We’re Seeing From The Stock
While I believe that we are nearing an end to the Synthetic Biologics gains, it is having a great start to the trading session this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:45), SYN is trading at $3.51 per share after a gain of $0.91 per share or 35% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SYN and CLRB. In particular, we’re interested in watching SYN gains fizzle as CLRB takes center stage as the next big runner. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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