NextCure announces reverse merger with privately held Avere
NextCure announces a reverse merger with the private company Avere as part of its corporate restructuring efforts.
In a situation where a strong catalyst of a reverse merger has been confirmed, we consider entering as we observe a rebound attempt after recently hitting a low of $4.1 on July 31 and recovering to a closing price of $4.4 on August 3. The current price is below the support level of $5.50, indicating it is in a pullback phase.
If the stock price reaches $7.5, I will take profits, and if it falls below $4.8, I will cut losses. Due to the high volatility from the pre-market surge, I will adopt a strategy of buying in increments during the pullback period after the gap up.
The split-buy strategy established during the consolidation period based on the reverse merger news proved to be successful. The predicted return was 25.0%, but the actual return recorded was a significant 101.8%, greatly exceeding the forecast.
We have confirmed that the pullback buying strategy based on support and resistance levels remains effective even amidst the sharp volatility following news events. In the future, when significant volatile materials emerge, we will strictly adhere to the principle of planned incremental buying rather than engaging in reckless chasing purchases.