This Mid-Cap Biopharma Stock Has Attractive Upside Potential
Let me show you why these shares look promising.
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Biohaven Ltd BHVN has an extensive list of clinical and preclinical programs. I have no special knowledge of what is in their pipeline or what the FDA will approve, but the charts are looking promising.
Let's check them out.
In the daily bar chart of BHVN, below, I can see a stock that rallied and then made a correction. The shares now look poised for a rally. BHVN trades above the bottoming 50-day moving average line and below the rising 200-day line.
The On-Balance-Volume (OBV) line shows me a similar pattern as the price chart and supports the idea of further gains. The Moving Average Convergence Divergence (MACD) oscillator is crossing above the zero line for an outright buy signal.
In the weekly Japanese candlestick chart of BHVN, below, I can see an improving picture. The shares are trading below the 40-week moving average line but that may not last for long.
The weekly OBV line turned lower from early March but could be poised for renewed strength. The MACD oscillator is below the zero line but narrowing. A new buy signal could be seen soon.
In this daily Point and Figure chart of BHVN, below, I can see a price target in the $51 area.
In this weekly Point and Figure chart of BHVN, below, I can see a price target in the $51 area.
In this second weekly Point and Figure chart of BHVN, below, I used a five-box reversal filter. Here the chart suggests a target in the $63 area.
Bottom-line strategy: Investing in pharmaceutical firms like BHVN is risky as success or failure can hinge on test results. Aggressive traders could probe the long side of BHVN at current levels. Risk to $32.
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