Is Crinetics Pharmaceuticals (CRNX) On Your Watchlist?

Of all the biotechnology stocks out there, which is the best biotech stock? Is it the one that has been beaten down to a multi-year low price and looking to rebound? Or it is a new young biotechnology company that is making new all-time price highs? The beauty of the stock market is that it offers crumbs to each and every kind of participant.

If you are the kind that seeks beaten down biotechnology stocks, Novavax (NVAX) comes to mind, among others. If you are seeking to find new young biotech stocks making all time new highs, in the hopes of finding potential new young leaders to lend support to a bull trend, Crinetics Pharmaceuticals (CRNX) is worth a look.

Let us look at the first few years of Crinetics Pharmaceuticals’ life and the CRNX stock chart. Just to see if anything stands out.

From a purely price/volume perspective what, if anything, stands out? The gap up is shown. The volume rise accompanying the gap is also clear. But does that mean the stock is ripe for a run? In real-time does it really indicate that a move is in full force? Or if a move has just started? The way this chart is structured, it is not even clear if an uptrend is in progress or not. What if we try and smoothen out the edges using a weekly closing chart?

It is the same chart, for the same time frame, but with closing weekly prices rather than weekly OHLC or bar chart. Does that help with the view? Perhaps not. We need a better view.

Price Volume Action of Crinetics Pharmaceuticals (CRNX)

Now things seem a lot clearer. From the low pegged in March 2023 of $15.49, Crinetics Pharmaceuticals (CRNX) made a near-term high at $22.35. A reaction to the move from $15.49 to $22.35 ensues, which pegs a low of $15.97. Since the low at $15.97 is higher than the prior low at $15.49, you are now waiting for the stock to peg a higher high than the prior high of $22.35.

The gap up and its follow-through in September 2023 makes a higher high at $29.49 we were waiting for. This first inclination of an impending uptrend was signaled ahead of the overall market’s change of tide which was indicated in November 2023.

Just because Crinetics Pharmaceuticals (CRNX) jumped the gun before the overall market does not mean a thing. Stocks move at a different pace and with a different rhythm from one another. But the October 2023 move was good enough to make a speculator place the stock on his watchlist.

There is still plenty of work for Crinetics Pharmaceuticals to do to prove itself as a potential buy. While this article may take a few minutes to read, the actual work that Crinetics Pharmaceutcals (CRNX) is doing takes months. As is usually the case, the set-up phase takes a long time. The actual action or time taken to make a move is usually much shorter.

Is Crinetics Pharmaceuticals (CRNX) In An Uptrend?

If you pull back and look at the all-time chart for Crinetics Pharmaceuticals (CRNX), it looks as if its set-up phase was almost five years long. That is not an unusual amount of time for the set-up phase. Now the question is how long of a time will be spent on the actual move upwards? Yes, there has been an uptrend that has been confirmed. But a true move has yet to occur.

Is there a move seriously in the offing? The human mind wants to know the future. It has been the case for eons. Astrology was born out of that human need to know the future, the urge to predict the future.

Stock speculation is not prediction. It is the real-time action based on exactly what has happened and is happening. To the speculator, the future will take care of itself. But for most people that seems too much of an unknown and the human mind does not comprehend the journey through the unknown. People want assurances and guarantees. When none is offered, they look to other humans for assurances and guarantees, not realizing that humans are rarely right about the stock market.

The more humans a trader relies on, the worse his chances of success. The speculator on the other hand relies only on the stock to guide him to his next move. And the move after that. And the move after that. The less interference by a human mind, the better the odds of success.

Crinetics Pharmaceuticals (CRNX) Price Target

You can prove to yourself that the stock market is full of it. Well, that did not come out right. The stock market is full of predictions. Suppose you google “CRNX Target Price.” Lo and behold the first thing that pops up is as shown below.

Is it not funny that the vast majority of predictions are somewhere high and far away from a stock’s current price? If you want to put money into the market, you want to know that the stock you are buying is going to be much higher tomorrow than today. If the target price is below where the price is today, you will just walk away from the stock market.

The market’s job is to invite you to hand over your funds to the market. The marketing is subtle, not-so-subtle and in many cases overt. How are you going to navigate through such a maze of come-ons? Each one flashing visions of riches.

To help you along, someone smart would have researched all there is to research about Crinetics Pharmaceuticals. You will be told that Crinetics Pharmaceuticals is a new young biotechnology company that is working on cutting-edge solutions for rare endocrine-related diseases. 

To a speculator, it does not matter a bit what the company behind the stock is doing. It only matters if the stock price is rising in a rhythmic manner. In other words, there is clearly a visible uptrend that can be acted upon.

If you are going to be active in the market, know that stocks are bad. Program your mind to be The Perfect Speculator. Have specific rules and stick to the rules. Develop an edge in the market. An edge is something that you do, that no other human does. If you do what everybody else is doing, there is no chance of surviving the whiplash, the tornado, the typhoon, the thunderstorm, the earthquake, the volcano that the stock market can be and is.

A synopsis of the article in video form is here: