Cutting-Edge Crispr Therapeutics Has Made a Long Base: Time to Get Onboard?
Here's how I would play the stock after a recent sharp move higher.
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Crispr Therapeutics CRSP develops transformative gene-based medicines for serious human diseases. A very worthy job or even a calling. Let's check and see if the charts are calling us to buy the stock.
In the daily bar chart of CRSP, below, I can see some recent improvement in the chart and with the indicators. The shares have largely moved sideways in a wide range. Buyers seem to have come in in the $45 area and also around $40. Recently prices have surged above the rising 50-day moving average and the bottoming 200-day line.
The trading volume has really increased in the past 2 1/2 months. The On-Balance-Volume (OBV) line shows weakness from May to late October followed by more recent strength. The Moving Average Convergence Divergence (MACD) oscillator is now above the zero line.
In the weekly Japanese candlestick chart of CRSP, below, I can see the past three years of price history. CRSP made a significant decline but the pace of the losses the past year or so has slowed. The shares have managed to rally above the 40-week moving average line but its slope has not turned positive yet.
Trading volume has increased recently and the OBV line has turned higher telling me that buyers of CRSP are being more aggressive. The MACD oscillator is slightly below the zero line and could soon generate a buy signal if it moves above the zero line.
In this daily Point and Figure chart of CRSP, below, I can see a strong move to the upside and a potential price target in the $99 area.
In this weekly Point and Figure chart of CRSP, below, I see a price target in the $103 area.
Bottom-line strategy: Overall, the charts of CRSP are mixed. The recent sharp move higher is encouraging but creates a problem for me as to where to go long and what to risk. Ideally I would prefer to probe the long side of CRSP around $50 risking to $44. The Point and Figure charts suggest we have upside but I don't want to rush in.
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