Cue Biopharma Plummets 28% on $10M Equity Offering Amid Bearish Technicals

Summary
• CUE’s stock nosedives 28.3% to $0.2453, breaching its 52-week low of $0.2425
• Company announces $10M public offering of 35.7M shares and warrants at $0.28/unit
• Technicals show RSI at 4.97 (oversold), MACD -0.069 (bearish), and price below all major moving averages

Cue Biopharma’s (CUE) intraday collapse reflects investor skepticism over its $10M capital raise and deteriorating fundamentals. The stock’s 28% drop—its lowest since December 2025—coincides with a bearish technical setup, including a 57.5% volatility spike and a -536% operating margin. With the biotech sector mixed and Amgen (AMGN) rising 1.7%, CUE’s move underscores its precarious liquidity position.

Capital-Raising Announcement Sparks Flight to Safety
Cue Biopharma’s 28% intraday plunge is directly tied to its $10M public offering, priced at $0.28 per unit—below its 52-week low of $0.2425. The offering includes 35.7M shares and warrants exercisable at $0.30, signaling investor concerns about the company’s ability to maintain valuation stability. The move follows a 52-week low hit earlier today, with the stock now trading at 14% of its 200-day MA ($0.745). The technical breakdown is amplified by a -0.069 MACD and RSI at 4.97, confirming a short-term oversold condition. The offering’s 30-day over-allotment option (5.36M shares) further pressures near-term liquidity, as underwriters may offload additional shares to stabilize pricing.

Biotech Sector Splits as Amgen Rises, CUE Crumbles
While the broader biotech sector remains mixed, Amgen (AMGN) defies the trend with a 1.7% intraday gain, highlighting divergent investor sentiment. CUE’s collapse contrasts sharply with AMGN’s resilience, underscoring CUE’s liquidity crisis and speculative nature. The biotech ETF (XLK) is flat, but CUE’s -28% move reflects its high volatility (57.5%) and weak financials, including a -536% operating margin. Sector peers like Vertex Pharmaceuticals (VRTX) and Biogen (BIIB) show muted moves, indicating CUE’s decline is stock-specific rather than sector-driven.

Bearish Setup: Short-Term Shorts and ETF Positioning
• 200-day MA: $0.745 (far above current price)
• RSI: 4.97 (oversold but bearish trend intact)
• Bollinger Bands: Price at 0.2453 (near lower band at 0.367)
• MACD: -0.069 (bearish divergence)

CUE’s technicals confirm a short-term bearish bias, with key support levels at 0.2425 (52-week low) and 0.20 (next critical level). The stock’s 57.5% volatility and -536% operating margin suggest further downside risk. While no options are listed, short-term traders could consider shorting CUE against a stop above 0.3069 (intraday high). ETFs like XLK (biotech) remain neutral, but CUE’s liquidity crunch makes it a high-risk speculative play. The offering’s $0.30 warrant strike price could act as a psychological floor if overselling abates.

Backtest Cue Biopharma Stock Performance
The CUE ETF has experienced a maximum intraday plunge of -28% from 2022 to the present date. Following this event, the 3-day win rate is 43.45%, the 10-day win rate is 40.42%, and the 30-day win rate is 41.56%. The maximum return during the backtest period was 0.74% over 6 days.

CUE’s Liquidity Crisis Deepens: Watch for 52-Week Low Breakdown
Cue Biopharma’s 28% intraday collapse signals a deepening liquidity crisis, exacerbated by its $10M capital raise at a discount to its 52-week low. With technicals showing a bearish divergence and a -536% operating margin, the stock faces near-term pressure to test its $0.2425 support. Amgen’s 1.7% rise highlights the sector’s relative stability, but CUE’s high volatility and weak fundamentals make it a speculative bet. Investors should monitor the 0.2425 level for a breakdown, which could trigger a wave of stop-loss selling. For now, the stock’s trajectory remains bearish, with the offering’s $0.30 warrant strike price offering a potential short-term floor if overselling moderates.