Ventyx Biosciences, Inc. is a clinical-stage biopharmaceutical company, which focuses on developing novel small molecule therapeutics for the treatment of autoimmune diseases.
Take a look at the 1-year chart of Ventyx (VTYX) below with the added notations:
Chart of VTYX provided by TradingView
VTYX has formed key support at $35 (green), while also declining against a down trending resistance line (red). Those two lines have the stock trading within a common formation known as a descending triangle, or a pennant. Eventually, VTYX will have to break out of the pattern.
The Tale of the Tape: VTYX has formed a triangle. A short trade could be made on a break of support, while a long position might be entered on a break of triangle resistance.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT