This Small-Cap Biotech Has the Right 'Catalysts' in Place for Upside
Shares have so far been unable to clear a key price level. But the charts say that could change.
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Catalyst Pharmaceuticals CPRX is a biopharmaceutical company developing medicines for rare diseases.
Let's check out the charts and indicators for this Florida-based small-cap name.
In the daily bar chart of CPRX, below, I can see that the shares have made higher lows the past year but have been unable so far to clear the $17.50 area. Prices trade above the rising 50-day moving average line and above the 200-day moving average line.
The On-Balance-Volume (OBV) line has chopped sideways the past year but the OBV line has been making a couple higher lows. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
In this weekly Japanese candlestick chart of CPRX, below, I can see a longer-term uptrend. The shares trade above the rising 40-week moving average line.
The weekly trading volume is slow but the weekly OBV line shows us a rising pattern the past two years. The MACD oscillator is above the zero line.
In this daily Point and Figure chart of CPRX, below, I can see an upside price target in the $21 area.
In this weekly Point and Figure chart of CPRX, below, I used a five-box reversal filter. Here the software suggests a long-term price target in the $37 area.
Bottom-line strategy: CPRX is not a household name so traders and investors need to do some research into the company. Aggressive traders who have done their research could go long CPRX on strength above $17.50.
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