Insmed Inc. Stock (INSM) Skyrocketed by a staggering 120% higher recently.

According to Nasdaq.com, the Insmed Inc. stock advanced more than double in the pre-market trading after the company announced that its new drug, an inhaled antibiotic known as Alis, successfully treated patients with a rare lung disease. More specifically:

Alis met the main goal in a late-stage study involving 336 adult patients with nontuberculous mycobacterial lung infections. According to Insmed, the addition of the drug showed statistically significant reduction in bacterial density by month six in 29% of patients, compared to just 9% in patients receiving the standard treatment.

Insmed Inc Stock Skyrocketed – Weekly Time Frame

Without any further delays, let’s take a look at the Weekly Chart. Price has extended from all time lows at 2.60 suggesting cycle from 08/28/2000 has been completed and should see at this stage a correction against the 199.22 highs. And of course is too early too make huge calls, the reason we are going to take it step by step.

At this stage and as the following chart indicates, INSM has extended with waves iii red while in the 3rd swing up for ((w)). Short cycles we should see a short term pull back and from there extend higher again to reach the equal legs – 1.236% extension at the zone of 34.80’s – 40.90’s before sellers appear. The view comes in line with our analysis relating to IBB and XLV ETF’s while both Funds are looking for an additional extension higher.

At this point we are looking for the dip in wave iv red to trigger Long entries towards the targets higher as mentioned above.