Long $ZLAB for a while

21 בפבר׳ 2022

ZLAB is a Chinese biotech company specializing in the treatment of cancer, among other things. In December an insider bought 4,000 shares. Also, hedge funds have been increasing their exposure to ZLAB for the last 4 quarters. The stop is 7% below at the red line. There are 2 upper trend lines (yellow). My feeling is that ZLAB will be unsuccessful at getting through both of these levels of resistance. However, they are about 31% above. This is a more than 4:1 reward/risk ratio. Also note that ZLAB has earnings on Mar 1 after hours. 87M float on this one