SPACs have exploded in popularity in 2020 with many investors hopping on board the next hottest trend. Jaguar Health is one of those companies that have joined in with the SPAC craze as well as boasting plant based prescription medicine. In addition, the technicals are strong on this chart. Lets take a look at their company profile:
“Jaguar Health focus’ on developing novel, sustainably derived gastrointestinal products on a global basis. Our wholly-owned subsidiary, Napo Pharmaceuticals, focuses on developing and commercializing proprietary human gastrointestinal pharmaceuticals for the global marketplace from plants used traditionally in rainforest areas.”
Regarding the SPAC Rumors. Reportedly, Jaguar Health’s wholly owned subsidiary, Napo Pharmaceuticals, is discussing enacting a SPAC merger to take anticipated subsidiary Napo EU public.
Lets dig into the charts!
Jaguar Health Elliotwave View:
Medium term term view from the all time low in November 2020. Jaguar Health is favoured to have 5 swings into the peak into Red I on Jan 11, 2021 @ $5.00. From there, a lengthy Red II correction to that cycle occurred which bottomed recently on March 4, 2021 . Off that recent low @ 1.32, a sharp rally occured which is giving evidence to the Red II being set. In addition, there there is an extreme area blue box we are able to measure. This is an area where buyers and sellers enter into the market. For instance, some profit taking is likely to occur around the $6.13 to $9.11 area. However, Red III is more than capable of reaching the $9.11 price point considering the percentage gains enjoyed from the November 2020 low.
In Conclusion, with the data that is present, this stock is favoured to have struck a low recently at the March 4 2021 low. There is upside gains to be had as long as that level remains intact.
Above all, using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.