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Neptune Wellness Solutions, A potential Super Winner

NEPT Buy Signal

On June 12th 2019 we sent a buy signal on Neptune Wellness Solutions:

In which we proposed the following trade setup:

NEPT is a clear buy and today’s move can be exploited to open long positions. This is what we did with a limit order and an average buying price of $4.73. At the time of posting the price is $4.76.
It is not easy to propose a clear stop order level due to possible fluctuations but ideally the stock price should not close below $4.25 on a weekly basis.
Considering the $0.3 All-Time-Low and the $5.1 breakout level an intermediate price target should be in the $10 area or a minimum of 100% profit potential from a medium term perspective.

Bull Run Catalyst

On July 18 2019 the company released the news that Neptune Wellness Solutions Closes $41 Million Private Placement. This certainly acted as a catalyst to propel NEPT price higher although the bull orientation was already visible in the technical configuration well in advance of the news release.

It is a remarkable feat for NEPT to close the week at $6.13, which is above above its previous All-Time-High from September 2007 at $6.09 on a dividends-adjusted basis.

NEPT Dividends Adjusted Monthly Price Chart on July 19th 2019

A Potential Super Winner

In Weinstein’s language NEPT is a potential ‘super winner’ as it meets various conditions such as trending up in a bull market and a break-out above historical price high that is accompanied by a significant increase in trading volumes.

As we highlighted when launching the buy alert:

On the yearly price chart resistance levels are $5.11 and $5.98 above which the upward movement should accelerate.

For some reason we may have confused the all-time-high at $6.09 for $5.98 but since the close is above the former the conclusion is unchanged and a minimum price target of $10 should be reached from a medium term perspective.

In the mean time the stop loss can comfortably be raised to breakeven price which in our case is $4.74.

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