itssean310

Long $ZLAB for a while

NASDAQ:ZLAB   Zai Lab Limited
$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

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