From $17 to $86... and More to Come

Liquidia (LQDA) has never traded above $90. About 15% of the shares available are held by people betting it goes down.

Here's why I'm excited... When a stock cracks over $90 for the first time, it tends to gravitate toward $100 like a magnet. Everybody short this one has to buy it back on the way up. 

LQDA is at $86.83, with the all-time high sitting at $91.10... so we're about 5% from finding out if I'm right.

The backdrop doesn't hurt either. Liquidia has been in a long court fight with a much bigger competitor over who has the right to sell its lung drug. 

Last week the judge accused the other side of tampering with its own filings and demanded to know which lawyer did it. LQDA popped 8% that day.

The business is working without the courtroom help, too. Sales of its drug jumped 44% last quarter. It now has 23% of that market, with profit up 262% from the quarter before.

This thing was under $17 a year ago.

The 78-minute chart is an A+ setup. The 130-minute grades out at an A and needs a momentum shift to get there.