EXACT Sciences Corp. (EXAS) spiked to a high in early November and decline but the stock still looks vulnerable to further declines from a technical perspective. Let's check the charts and indicators to see how a deeper decline could be precipitated.
In this daily bar chart of EXAS, below, we can see how the 50-day moving average line was a very successful indicator defining the uptrend in EXAS from January to the end of November. Since early December EXAS has spent most of its time below the now cresting 50-day moving average. The 200-day moving average line is still going up and is comfortably below the price action.
The volume pattern and the On-Balance-Volume (OBV) have not done a very good job in confirming the uptrend. Volume has not expanded and the OBV does not show much of an upward bias. The trend-following Moving Average Convergence Divergence (MACD) oscillator moved below the zero line last month and is still bearish.
In this weekly chart of EXAS, below, we can see that prices are up 10-fold from 2015 and still above the rising 40-week moving average line. The weekly OBV moved higher with the price action until early November. The OBV line has been flat to easier the past two months. The weekly MACD oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of EXAS, below, we can see a possible distribution pattern with a $41 downside price target. A break of $48.06 would probably generate further selling.
Bottom line: The charts and indicators of EXAS look toppy. Traders and investors should probably stand aside waiting for a better buying opportunity.
