TNXP

TNXP: A High-Risk, High-Reward Swing Trade Opportunity

TNXP: A High-Risk, High-Reward Swing Trade Opportunity

Posted on July 8, 2025

Is Tonix Pharmaceuticals (TNXP) the Next Big Swing Trade?

Tonix Pharmaceuticals (TNXP) has been catching the eye of swing traders lately, thanks to its upcoming catalysts and volatile price action. With a major FDA decision looming and technical signals pointing to a breakout, is TNXP a golden opportunity or a risky bet? Let’s dive into what traders are saying and what opportunities might be waiting.

What’s Driving the Buzz?

Here’s the scoop from the trading community, based on recent chatter:

  • FDA Catalyst: TNXP’s TNX-102 SL, a sublingual cyclobenzaprine for fibromyalgia, has a PDUFA date set for August 15, 2025. Some traders are betting on approval, with one predicting a potential double from $35 to $70 or more, citing strong Phase 3 results and Fast Track status.
  • Technical Setup: Chart watchers are pointing to a MACD crossover, higher lows, and rising volume, suggesting TNXP is in an accumulation phase with breakout potential above $37.
  • Analyst Optimism: Price targets range from $67.50 to a lofty $585, implying massive upside (98.59% to 1,548.82%). But with only a couple of analysts behind these, take them with a grain of salt.
  • Bearish Risks: Critics highlight TNXP’s 98.85% year-to-date drop, a recent 1-for-32 reverse split, and a $78.8M Q2 2024 loss, raising dilution fears from a $500M shelf offering.

Key Catalyst: The August 15, 2025, PDUFA for TNX-102 SL could spark a pre-approval run-up, but a denial or delay might trigger a sharp sell-off.

Potential Opportunities for Swing Traders

TNXP’s setup offers several angles for traders willing to stomach the risk:

  • Pre-PDUFA Momentum: A swing from the current $35-$37 range to $50-$70 is possible as the FDA date nears. Traders could capitalize on speculative buying.
  • Mpox Vaccine Speculation: TNX-801, a potential mpox/smallpox vaccine, is gaining traction amid the WHO’s mpox emergency declaration. Positive preclinical data could drive short-term spikes.
  • Technical Breakout: A close above $37 with strong volume could signal a move to $50-$65. Set stop-losses below $30 to manage the stock’s 27% weekly volatility.

Risks to Watch

TNXP isn’t for the faint of heart:

  • Financial Struggles: With only $4.2M in cash and a high cash burn, dilution is a real threat.
  • Volatility: A beta of 2.86 and 15.37% short interest mean wild swings are likely.
  • Speculative Nature: Biotech stocks can crash on bad news, and TNXP’s 52-week low of $6.76 shows the downside risk.

Swing Trade Strategy

Here’s a game plan for swing traders:

  • Entry: Buy on a breakout above $37-$38 with high volume.
  • Targets: Take profits at $50 (first resistance) or $65 (major resistance).
  • Stop-Loss: Set below $30-$33 to limit losses.
  • Timeframe: Hold for 1-4 weeks, exiting before or after the PDUFA based on news flow.
  • Risk Management: Allocate just 1-2% of your portfolio due to TNXP’s high risk.

Pro Tip: Monitor X posts and news for real-time updates on TNX-801 or PDUFA developments. Always do your own research—trader hype can be misleading!

Final Thoughts

TNXP offers a high-risk, high-reward setup for swing traders. The FDA catalyst and mpox vaccine potential could drive big moves, but financial weaknesses and volatility demand caution. Keep an eye on the charts, set tight stops, and trade smart.

Disclaimer: This is not financial advice. Always conduct your own research and consult a financial advisor before trading.

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