Intellia Therapeutics Is Worth Trading Right Now

 | Sep 08, 2017 | 11:01 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

ntla

Intellia Therapeutics, Inc. (NTLA) does not have a long trading history but right now I see a base pattern worth trading, in my opinion.

In this daily bar chart of NTLA, below, I can see how prices have hammered out a base across the $14 level. There are a number of relatively short-lived declines below $14 but they have the characteristics of buying and accumulation. Once prices break out above $15 the dips back toward $15 are bought -- an example of where previous resistance around $15 in March-May reverses roles and becomes resistance.

The 50-day moving average line rallies above the 200-day line in July for a bullish golden cross signal. The rising 50-day average was successfully tested in August. Throughout the whole sideways trading for NTLA the On-Balance-Volume (OBV) line was either rising modestly or steady like in June when prices decline to a new low close of near $11. Prices have broken out over some minor resistance around $18 in recent weeks and the the OBV line has responded bullishly and the MACD oscillator has been bullish, too.

In this weekly bar chart of NTLA, below, we can see that we do not have a lot of price history. The little history we do have is bullish. Prices are above the rising 40-week moving average line. The weekly OBV line has been bullish since last October and the weekly MACD signaled a go long buy last month.

In this Point and Figure chart of NTLA, below, we get a different picture of the base and the breakout at $18. A longer-term bullish price target of $34.50 is indicated.

Bottom line: I wish there was more trading history but we work with what we have. I would recommend trading NTLA from the long side on a dip into the $21-$20 area and risking below $18, where support lies. On the upside I would look for gains to around $30 and maybe $34.50 longer term.

More From Bruce Kamich:

Columnist Conversations

Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...
Has quietly taken a mini beating over the past few weeks. Might be worth a look on Monday given everything tha...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.