VSTM Verastem Inc – Bullish Break

VSTM Verastem Inc – Bullish Break in the Weekly TF

VSTM Verastem Inc - Bullish Break in the Weekly TF

Verastem Inc. stock price broke the multi year bearish trend line the 07/10/2017; suggesting that the 07/08/2013 cycle from all time highs of 18.70’s has been completed at the 1.05 lows. As we all know, after a trend line break, a retest follows to validate the move. The VSTM Stock price retraced lower after the break higher to retest the broken trend line. Price failed to extend below the 2.99 level and from there the stock extend higher. Recently, price broke one more important barrier, the larger degree descending channel’s median line adding additional strength to the overall bias.

At this stage; we anticipate a short term pull back to retest the median line around the 4.84 area.

VSTM Verastem Inc – Bullish Break in the Daily TF

VSTM Verastem Inc - Bullish Break in the Daily TF

The Verastem Inc. stock at the Daily time frame has inline a bullish incomplete sequence from the 1.03 lows. At the time of conducting the study, price is trading at the 5.24 level. That level is the 61.8% – 76.4% Fibonacci extension of the (W) – (X) blue swings. From around current levels, we want to see the short term correction lower. The correction should mark wave B (red) and ideally retrace to the 4.80’s area. Post completion, we expect an extension higher towards our target at the equal legs – 1.236% extension, around the 6.60’s – 7.50’s zone.

Overall View & Trade Recommendation:

Our view favors the Verastem Inc. Stock higher and recommends; Long Trades post-Short Term 3-Swing Pull Backs. Wave B should unfold in 3, 7 or 11 swings against first degree the 2.99 “(X) blue” and second degree the all time lows at the 1.03 invalidation level.

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