Biotech Stock Presents Interesting Technical Positioning

The stock has struggled to rebound from its recent bear gap

Deputy Editor
Nov 2, 2021 at 2:53 PM
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Germany-based biotech stock BioNTech SE (NASDAQ:BNTX) has been struggling to rebound from its late-September bear gap, consolidating above the $240 level for a good portion of October. The company will report new clinical data regarding its CAR-T cell therapy candidate, BNT211, at the 36th Annual Meeting of the Society for Immunotherapy of Cancer (SITC) on Nov. 14. Ahead of the event, the stock is flashing a bull signal on the charts. 

More specifically, the equity just came within one standard deviation of its 140-day moving average, after spending a significant period of time above it. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, four similar signals have occurred in the past three years. BioNTech stock enjoyed a positive return one-month return in all of those cases, averaging a 21.8% gain. From its current perch, a similar move would have BNTX clearing resistance at the 40-day moving average, and back above its aforementioned bear gap. 

BNTX 1102

A shift in sentiment in the options pits could provide tailwinds as well. Of the seven analysts in coverage, six carry a "hold" or worse rating on BNTX, with just one "strong buy" in the books.

It's also worth noting that the security's Schaeffer's Volatility Scorecard (SVS) sits at an 88 out of 100. This means BNTX has exceeded option traders' volatility expectations during the past year.

 

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