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How We Traded the Breakout in Chinook Therapeutics Stock

In early July, I wrote to you about Chinook Therapeutics, Inc. (KDNY), a strong biotech stock that’s been on our Watchlist a few times.

And I mentioned at the time that it had just become an official recommendation in my premium Alpha Stocks trading service.

Well, I recommended taking profits on the final piece of the position yesterday, so let’s recap how the whole trade played out…

Strong Start

When we entered the trade, KDNY was still stuck in a multi-year base pattern with a horizontal overhead resistance around $19 per share.

But it finally started to make a move in late July.

Weekly Chart of Chinook Therapeutics, Inc. (KDNY) – Source: TradingView

Now, it may not look like much on the weekly chart.

But when you look at it on a daily chart, you can see the profit opportunities in more detail…

Daily Chart of Chinook Therapeutics, Inc. (KDNY) – Source: TradingView

We recorded an entry price of $17.99 on July 5, and within three days we closed one third of our position in the stock at $19.50 for a gain of 8.4% from our entry point.

By the end of that day, however, the stock retreated back below $19 again, so we held on to our remaining two thirds.

The Big Break

You can see that over the next few weeks, KDNY struggled to break through resistance at $19 but continued to push that boundary day in and day out.

On July 27, the stock attempted to break out again, but that move was reversed the following day.

It wasn’t until Aug. 4 when we finally saw a decisive breakout move…

KDNY jumped nearly 6% that day to close at $20.37, but it had more in the tank.

The next day, the stock rallied another 3.6% but faded into the end of the day. That was the sign that the move might be losing steam.

The same thing happened on Aug. 8, so I recommend Alpha Stocks members take profits on another third of the position for a gain of 14.6%.

Closing Out

Now, I’m glad that this move played out the way it did so that we had a chance to collect some profits before earnings.

KDNY reported the night of Aug. 8, so we were only holding one third of the position when the numbers came in.

Unfortunately, they didn’t live up to expectations, and the stock dropped when the market opened again on Aug. 9.

As I saw the stock pulling back, I sent a final alert to Alpha Stocks members letting them know to close the last third of the position, which we closed at $19.16 for a gain of 6.5%.

All in all, the full position netted us a return of 9.8% in just 35 days, which is incredible in a market like this one.

I’ve got several more stock ideas in the works right now at Alpha Stocks that could play out in a similar fashion… Just click here to learn more now!

Ready for the Big Show?

Before I go, I need to invite you to a LIVE special event happening on TODAY at 12 p.m. ET

My colleague and expert trader Josh Martinez is set to unveil his brand-new professional-grade system that virtually anyone can use with minimal upfront investments…

We’re talking as low as FIFTY BUCKS! You don’t want to miss this!

Click here to snag your seat for the main event happening TODAY at 12 p.m. ET.

I look forward to seeing you there!

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

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