PYC has broken a 7 week sideway consolidation today. The TA...

PYC has broken a 7 week sideway consolidation today. The TA gauge now shows a buy rating. In general, investors are stilling waiting for news. Fri 29.01.2021 remains to be a key date when the Head and Shoulder Reversal Zone ends.

PYC is not a volatile stock, in fact it could be one of the most steady biotech stocks in the Aussie market. It is on a firm timeline to achieve FDA approval and commercialisation in 2024/25. However last October's 17c CR might have skewed the sentiment to the negative side. Coupled with the Covid jitteries, some continued to take profit especially if they had bought in from the 5.5c CR in Oct/Nov 2019. Even at 14c, it is still a juicy 254.5% profit. However some longer term investors could see opportunities to buy in at an 18% discount to the CR price.

Macro View

• The US market continues to overheat with unsustainably high P/E ratio while the Covid situation is still not under control. The travel and tourism industries are decimated and all the feed-in businesses are also seriously impacted. Unemployment and hence the overall economy would find it difficult to improve much further from here. There is a limit on how far money printing could continue. It appears an already oversized bubble is inflating at an exponential pace. Going burst is not IF but WHEN.

COVID Front

• The chart #2 below, you would see the US Covid cases are increasing at 3 gradients, one stepper than the previous.
• The number of hospital and ICU beds, nurses and doctors and medical personnels, etc.are finite resources. There is a limit on how many cases could be handled.
• An estimated 2.8 million vaccine doses have been administered in the US as at 02.01.2021, much less than the 20 million promised by President Donald Trump.President-elect Joe Biden said at the current rate of vaccination it would take "years" to inoculate Americans (more info).
• I would be monitoring this chart and report to HC members if the vaccination has caused a tapering of the Covid cases.

How is PYC tracking? Just look at my 4 favorite TA indicators as show on chart #3 below.

• Fast stochastic: Flipped to the upside on Thur 07.01.2021 and went above 50 today. Uptrend is confirmed. (Buy)
• MACD: It flipped up on Thur 07.01.2021 (Buy). If it crossing above 0, uptrend would be confirmed and that would be a Strong Buy.
• RSI: It has gone sideway in the last 7 weeks and finally broke above 50 today! Uptrend is confirmed. (Strong Buy).
• Slow Stochastic: Flipped to the upside on 29.12.2020 and trending up. It broke above 50 today and uptrend is confirmed. (Strong Buy)
• Overall, it is a Buy to a Strong Buy.

If SP could break above 16.5c and keeps trending up, inside the brown uptrend channel, we could breathe a sigh of relief as PYC would resume the healthy uptrend. The threat of a Head & Shoulder reversal would also have been removed.

PYC's US CEO Sahm Nasseri is invited to present at the ICR Westwicke Conference on Thursday, January 14, 2021 at 8:30am US Eastern Standard Time. That is Australian Eastern Daylight Saving Time 00:30 Fri 15.01.2021. The ICR conference hosts over 300 public and private companies and is one of the largest investor conferences in the US. You could stay up and listen to it at Webcast Link: https://icrinc.touchcast.com/showtime/icr-conference/embed/a5caa3c3-1dd6-acc7-31d9-a362862d1391

These are my analysis and TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.