Here’s your trade on ADMA Biologics $ADMA – March 19, 2025
Read the transcript here COTD – March 19, 2025
Dan Fitzpatrick here at StockMarketMentor.com. The market just closed and I want to look at a couple of different stocks here in the biotech sector.
First of all, ADMA Biologics ( NASDAQ: ADMA ), this was in a pretty steady downtrend since early November. The stock peaked up here and got massive buying right up here at 20.00. The stock runs up again about 15 percent or so and then is in this downtrend, to where it’s pulled the 50-day moving average below the 150-day moving average.
But that was then, back in mid-February, and this is now, where this 50-day moving average was trending lower. Now, just over the last few days, it started to move higher again. And so now, if we were to disregard the 150-day moving average, in fact, I’m going to do that right now. Here, how’s that for disregarding?
If we were to disregard that moving average, then I would frankly look at this type of a move as what I call a touch and go, where the stock has the sense that this is like an airplane on final approach. It’s coming down to tag the runway here, the 200-day moving average, and then takes off again.
It’s not a big dramatic thing, but it’s working pretty well here. Here’s where the stock was trading on the 13th, 14th, and then now it’s up here on the 17th, on Monday. Tuesday, bam! Wednesday. So this was a key move here today, and it happened on higher than average volume, probably about 25 percent higher than average volume.
And so, you could say, Well, it’s too late to buy this stock. And I would say, Yeah, it’s late to buy the stock. I wished I’d seen it, but I didn’t, so don’t blame me! This would have been the better day to buy the stock, on the 5th when it first poked out above the 50 on pretty decent volume. You saw really, really good volume here.
And then the following day, we still got great volume and the stock continued. So this was actually the turnaround day. This was actually what I would call the trigger for buying this stock. Now, you had to be aware of it. This should not be the kind of thing where you just say, Oh, man, how did I miss that?
You missed it because you didn’t have it on your watch list, whatever that is, however you figure it out. But you didn’t have this on your list to a point where, when it was trading back here, you were watching it. You weren’t trading it. You weren’t owning it. But you were. watching it. So like, nothing to see here. Nothing at all.
And then, Oh, okay, well, that’s kind of interesting here on the 28th. That’s kind of interesting. Heavy volume here. So maybe this is the low at the 200. But it’s not something I’m going to buy. Okay, and it’s a good thing too. Now we’re up here on the 4th, and now this is getting really interesting.
But again, you’ve got to be watching this. So if you’re looking at this on Monday the 4th, you’re going to look at this, and you’re going to have an alert set, say, at $17.00 or so. And then, bam! The next day, the stock runs up above 17.00, and you’re in. So you’re in at the appropriate time. Again, shoot, man! I wished I’d seen it.
This is actually a pretty good setup for what I call a touch-and-go. I also call it my moneymaker pattern, because, for the most part anyway, this is a pretty good pattern that ultimately will lead to some really nice profits. And that’s what we have now. So is this too late to buy? Let me put it this way, this isn’t the high at 20.50.
The stocks are not going to go down here. The question is, how far up is it going to run? Say to $23.00, which is between 10-15 percent before it really hits this resistance line here. This is really the way I would look at this technically. I would say 23.50 would be a good range to the upside, where I would say, Okay, for where the stock is right now, I think it can run up to 23.50. That’s about 12-13 percent.
And then, on the downside, you’re buying this stock, and you’re keeping a stop, like right down, I’d say, frankly, below today’s intraday low. So this is really how I’d be trading this stock. This ( NASDAQ: KRYS ) is actually a different stock, obviously, the same sector. It’s got a little bit higher rating on IBD. This also can work, but this is a really choppy pattern, where this is really a well-defined pattern.
So given a choice between the two, I would say, if, again, you’re a little bit late here, but I don’t think too late. This has some really, really nice momentum, and you look at the volume today, heavier than average volume. So I think you can still take this stock. Just make sure that you’ve got a protective stop to the downside.
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