Immunovant Inc. IMVT Stock Analysis

Immunovant Inc. stock trades under the ticker IMVT & closed at $46.77/share on 1/11/2021.

After recent technical movement, IMVT stock is worth taking a closer look at for a short term trade opportunity.

Immunovant Inc. IMVT Stock One Year Technical Performance

IMVT Stock Price: $46.77

10 Day Moving-Average: $47.25

50 Day Moving-Average: $48.50

200 Day Moving-Average: $32.80

RSI: 46

Immunovant Inc. stock has been stuck relatively rangebound for the last few months, and the overall market movement will likely dictate its next move.

IMVT’s MACD is also interesting, as it looked ready for takeoff until yesterday, whereas now it could be replicating its moves from mid-December, where the MACD almost had a bullish cross, but ultimately had a significant downtrend, while prices remained rangebound (which also happened in August, citing the bottom of the chart above).

Despite a few recent consecutive strong days, yesterday it far outpaced the NASDAQ on a downward move, losing 5%+, VS. QQQ’S loss of 1.45%.

IMVT stock has options, and I am favoring the $45 strike price, looking for February’s expiration date.

Given the general market’s iffy footing, the $45 puts look appealing, as they can be bought at a 3:2 ratio vs. the $50, while still saving ~14% of capital, which enables safer hedging than holding 2 $50 contracts.

On the upside, I still also like the $45 calls, given how tightly range bound they have been recently, and the average percentage of their gaps to the upside & downside, with 5 weeks until expiration.

The one caveat is that the NASDAQ itself is not looking as technically solid as it has all year, so there may be more downside than upside here, but given that nature of IMVT stock’s strength this year, traders of options have a great opportunity, and traders of common shares should be on the lookout for when they see a bottom.


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