Intellia Therapeutics Is Worth Trading Right Now

 | Sep 08, 2017 | 11:01 AM EDT
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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.

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