Wave Life Sciences (NASDAQ: WVE) Could Soar Again

The market soared today on the hopes that Gilead Sciences’ (NASDAQ: GILD) new COVID-19 treatment really works.

In a University of Chicago Medicine study, remdesivir was administered to 125 people infected with the coronavirus, 113 of which had “severe” symptoms. Two perished from the disease, sadly, but the rest were discharged after receiving treatment.

The drug in question – remdesivir – was created in 2015 by Gilead to combat the Ebola virus

Now, it could be the key to unlocking the American economy ahead of schedule. That means a quicker return to work and school.

And, of course, sky-high stock values.

The Dow, S&P, and Nasdaq Composite all finished out the day on a high note, rising 3%, 2.7%, and 1.4%, respectively.

Even the much-maligned Boeing (NYSE: BA) got in on the action when shares surged 14.7%. The airplane manufacturer said that it would resume production as early as April 20th in Seattle. Bulls took the news very well.

Michael Arone, chief investment strategist at State Street Global Advisors, believes a rapid recovery could develop if remdesivir proves to be effective.

“It’s far too early to signal the all clear, but what this demonstrates is that coronavirus is a health problem that requires a health solution,” Arone said.

“If we can develop a health solution, I think at least from a market perspective, things will rebound pretty quickly.”

Fundstrat’s Tom Lee echoed Arone’s sentiment, adding that a COVID-19 treatment might have the most immediate economic impact of the proposed solutions.

“An effective treatment is a huge deal and would create a path to open the economy and resume normal ‘social activities’ way sooner than a vaccine,” Lee remarked.

“A treatment is safer and more scalable because it is only given to people who need to be treated.”

If stocks are set to make a true comeback, traders will have plenty of potential “buys” to pick from. And while the blue-chips will undoubtedly soar with the rest of the market, more risk-tolerant investors may want to consider less popular stocks.

Like Wave Life Sciences Ltd. (NASDAQ: WVE), a biopharmaceutical company.

WVE is a stock “on the ropes.” Since last December, WVE shares are down over 77%.

The stock attempted a recovery in March, only to get skewered again. This time, however, WVE may be setting itself up for another rapid burst.

Especially after setting a higher low a few days ago.

Today, the stock broke out above the 10-day moving average and its minor bearish trend (represented with the yellow trendline), suggesting it’s ready to move.

Should WVE trade above today’s high by a significant amount, it might make sense to go long with a trade trigger of $8.60. If the stock hits the March high, it would lock-in a gain of over 100%.

Not bad, huh?

That doesn’t mean the gains will stick, though; they probably won’t.

But for traders looking to catch lightning in a bottle, WVE might offer a great avenue to do so in spades.

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