Buy the Dip on This Biotech Stock After Recent Fall

Core Insights - BridgeBio Pharma Inc (NASDAQ:BBIO) experienced a significant stock pullback from its record high of $81.33 on January 22, reaching a three-month low after Pfizer withdrew a tafamidis patent in the European Union [1] - Despite the pullback, shares were observed trading up 5.2% at $71.57, indicating underlying strength supported by technical indicators such as the ascending 100-day moving average [1] Technical Analysis - BBIO is currently within 0.75 of its 100-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time over the past two weeks and 80% of the last 42 trading sessions [2] - Historical data shows that similar signals have occurred six times in the past decade, with BBIO being higher one month later 67% of the time, averaging a gain of 7%, which could position the stock at $76.58 [2] Market Sentiment - Short interest in BBIO has been increasing, now representing 11% of the stock's available float, equating to nearly eight days' worth of potential buying power [3] - The 10-day put/call volume ratio at major exchanges indicates that BBIO's current sentiment is more pessimistic, sitting higher than 77% of readings from the past year [3]