Time to Bring Amicus Therapeutics Into the 'FOLD'

 | Sep 08, 2017 | 10:09 AM EDT
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The charts and indicators on Amicus Therapeutics, Inc. (FOLD)  appear bullish to me. I would look to position this stock from the long side, but let's take a look at the charts and indicators before clicking on "buy."

In this daily bar chart of FOLD, below, we can see a sideways trading range market or base pattern from last September until June of this year. Prices traded sideways around $7 with the declines below $7 being bought. How do I know or believe that those declines were bought by investors? Look at the On-Balance-Volume (OBV) line as it moves higher signaling more aggressive buying buy people. The volume of shares traded on down days was light but on up days it was stronger. That is the way the OBV indicator works. During the sideways trend the moving averages did not work, but in March and April they "kick in."

In March, FOLD rallied above the rising 50-day moving average line. In April a small pullback in FOLD holds above the rising 200-day moving average line. Prices retest the 200-day line successfully in May. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line back in February and recently turned up to a fresh go long signal.

Daily bar chart of FOLD from www.bigcharts.com
 
In this weekly bar chart of FOLD, below, we can see that the base pattern in this stock is really much bigger than what we can see on a one-year daily chart. Here the pattern goes back to late 2015. The chart shows some old potential resistance in the $14-$19 area from back in 2015, but I am not that sure it will be a overhanging problem. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising strongly since January of this year and confirms the rally. The weekly MACD oscillator is in a strong and rising bullish configuration.
 
Weekly bar chart of FOLD from www.bigcharts.com
 
In this Point and Figure chart of FOLD, below, we can see the base pattern, the breakout on the upside at $10 and a $28.50 potential price target.
 

Point and Figure chart of FOLD from www.stockcharts.com

Bottom line: I like these charts (above) and suggest buying FOLD here and on any weakness toward $13. Risk below $11.50. Buy more on strength to $15 or higher looking for gains in the next several months to the upper $20s.

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