VRTX jumped over $20 in heavy volume and only a few days after the bullish golden cross of the 50-day and 200-day moving averages.
In this daily chart of VRTX, above, we can see a positive technical setup before today's gap. Prices were in an uptrend from a late-December low. VRTX was above the rising 50-day moving average line and above the flat to slightly rising 200-day moving average line. The On-Balance-Volume (OBV) line has been rising strongly since the beginning of 2017 and that tells us that buyers have been aggressive and have accumulated shares. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in January for an outright go-long signal. A fresh buy signal is being generated today.
In this weekly chart of VRTX, above, we don't have the latest price action but we know prices are above the 2016 highs for a significant breakout. The indicators were already in a positive mode before today's gap. Prices were and are above the 40-week moving average. The 40-week line is flat but should turn positive this Friday. The weekly OBV line was improving since October and the MACD oscillator crossed above the zero line this month for an outright go-long signal after a cover-shorts buy signal in January.
In this updated Point and Figure chart, above, we can see the newest entries and note that there are no gaps on this kind of chart. There is a breakout at $496 and another breakout at $104. The upside price target at this time is $111, and it was reached.
Bottom line: VRTX will probably continue its advance in the weeks ahead but it is probably going to make a sideways consolidation pattern as the $111 price target was reached. The weekly bar chart suggests the $130 area would be the next higher price objective. Traders who came in long this morning should hold. Traders looking to go long should wait for some sideways trading to develop so we/they can come up with a good stop-loss location.