Alkermes plc (ALKS) has experienced some choppy trading the past 12 months but this "rough period" may be coming to a close and we could see a smoother, more bullish trend in the months ahead.
In this daily bar chart of ALKS, below, we can see some "EKG-like" price activity the past year. Since late November the price action has improved. Prices are above the rising 50-day moving average line and for now above the 200-day line. From the November low we can now see a higher high and a higher low for the definition of an uptrend.
The On-Balance-Volume (OBV) line, above, has improved, signaling more aggressive buying. In the bottom panel we have a bullish and bearish divergence. Prices make lower lows from August to November but the momentum study makes a higher low for a bullish divergence. In early December and January prices make a higher high but momentum made a lower high for a bearish divergence.
In this weekly bar chart of ALKS, below, we can see that prices have recently been testing the declining 40-week moving average line. A close above the average line is possible in the near future. The weekly OBV line has been steady or flat and I would like if it turned higher. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside in November for a cover shorts buy signal. An outright go long signal would come when ALKS crossed above the zero line.
In this Point and Figure chart, below, we get away from the "noise" of the daily bar chart. A rally to $56.36 and then $56.92 would be bullish and open up the potential for an advance to $63.86.
Bottom line: Looking to go long ALKS? I would wait for a close above $57 and risk a close below $51. Target is the mid-$60's.
