Buy the dip in SAVA based on strong Alzheimer's trial data

Cassava Sciences (SAVA) just got some positive clinical trial data on their Alzheimer’s drug. The result caused one analyst firm to upgrade SAVA’s price target from $3.00 per share to $6.00 per share. SAVA’s got a 9.4/10 analyst summary score, with most analysts rating the stock a “buy.” I entered SAVA Friday morning at $2.16 per share. It’s already up almost 100% from its share price last month, but I think it could continue its run next week.

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SAVA's end-of-day weakness suggests that instead of continuing its run, it may pull back early next week from its extremely overbought RSI. There's some support at 1.70, but we may see it move back down all the way to the 1.30-1.40 range before it even thinks about moving higher.

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With a falling star candlestick pattern forming on the daily, it's time to take profit on this trade. I lost on the shares I bought at $2.16, but made some profit on the shares I bought at $1.70, for a net profit overall. If you bought at 1.70, you made over 12% on that trade.