Context Therapeutics (NASDAQ:CNTX) was an IPO that released in October 2021. They are a women’s oncology company developing advanced small molecule and immunotherapy treatments to transform care for hormone-driven breast and gynaecological cancers. 

Their main drug, ONA-XR, is currently in a phase 2 trial. This drug is an investigational medicine for the prevention and treatment of ovarian, uterine (endometrial), and breast cancers. These cancers are progesterone-dependent and onapristone ER functions by blocking the progesterone receptor (PR).

However, the company also has a phase 1b trial update due out in the second half of 2022, along with three phase 2 trial updates later in the year. These include an endometrial trial and a granulosa cell trial.

Technicals

The price is currently at $2. A low was put in before their earnings release on May 11th, hitting a price of $1.27. But since then, a higher low has formed and CNTX looks set to continue. $2.40 remains a pivot area from previous price action.

If the price rises higher than this, $2.80 was resistance on the last major high and would likely see selling at this level. Some consolidation at this level before continuation would be healthy on a move up.

Chart provided by TradingView

100% returns?

Small caps go through seasonal changes. Sometimes, all of them are running. Sometimes, every pop gets sold back to prices lower than before. However, catalyst and news can always send penny stocks parabolic overnight. The need for catalysts when looking into these type of stocks is key. In this case, Context Therapeutics has many catalysts to look forward to over the next few months.

There is no guarantee for parabolic moves but if this stock can continue to see buying demand, we could see a move towards $3.50.

So…

The market cap is only $30M, which will allow for quicker moves. As seen since mid-May, the price moved up $1 over three weeks. We think the potential of the catalysts and the current set-up make for a worthy trade. A fall below $1.60 could be a sign of a reversal in trend, so that is an area for a stop. The FOMC meeting is later today, so there could be some choppiness in the lead up to that. Look for dips to enter.

Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.

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