Clovis Oncology (CLVS) has made a big upside move over the past 12 months -- from below $15 to nearly $75 -- but more gains await holders if we read the charts and indicators correctly.
In this daily bar chart of CLVS, below, we can see all of our favorite technical studies in gear on the upside. CLVS is above the rising 50-day moving average line after some tests of the line earlier this month. The 200-day moving average line is also bullish. A bullish golden cross of these two averages can be seen in September.
The On-Balance-Volume (OBV) line has been rising steadily the past 12 months and tells us that buyers of CLVS have been more aggressive and have accumulated longs. The Moving Average Convergence Divergence (MACD) oscillator just gave a fresh go long signal from above the zero line.
In this weekly chart of CLVS, below, we can see that prices are above the rising 40-week moving average line. Prices have climbed to fill most of the gap down in December 2015. The weekly OBV line is very strong and the MACD oscillator is very bullish.
Bottom line: CLVS looks like it might correct a little bit lower and for another week or two but I would anticipate it to resume its advance relatively soon. Traders could approach the long side of CLVS rising to $62. The $90-$100 area is our upside price target.