Medifast Offers Interesting Risk vs Reward Trade Setup

Medifast, Inc. (MED) has fallen 90% since its highs in 2021. This is primarily due to the weight loss drugs Ozempic and others. Medifast has a business model that deals with protein drinks, weight loss drinks and more.

Having said that, Medifast will bounce at some point and the chart signals it may be soon. Note the epic support on the chart going back to 2009. If there is ever a level to see a bounce, this is it.

On a technical basis, Medifast could bounce as high as $80. That is on the assumption that price does not break below $30.

While always high risk, these swing trades can give solid reward. This chart is virtually in the inverse to Eli Lilly (LLY). Any sort of hiccup in the weight loss drug would cause a huge pop in Medifast.

This is just an idea. Invest at your own risk. Due dilegence required. Speak to a professional.