Horizon Pharma (HZNP) has been holding above $14 the past four months but there were tests of the level in 2015 and early 2016.
The major trend is down and prices could make new lows, but repeated attempts to move lower have failed and this suggests the bears are losing their grip.
In this daily chart of HZNP, above, we can see how prices are trading below the declining 50-day and 200-day moving average lines. The daily On-Balance-Volume (OBV) line has been edging lower, but it is above the low of December. In the lower panel is the 12-day momentum study, which shows a bullish divergence between the equal lows in price in December and March and the higher reading of the momentum study over the same period of time. This is not a table-pounding bullish setup, but it is a start.
In this weekly chart, above, we can see HZNP is trading below the flat 40-week moving average line. The weekly OBV line is neutral and has not made a lower low since May 2016. The weekly Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a bearish configuration.
In this Point and Figure chart, above, we can see HZNP has held the $14.28 level twice. A move up to $15.31 will strengthen the picture and a decline to $14.13 will weaken things.
Bottom line: HZNP is pointed down, so we are in no rush to buy it. More base building is needed, but the $14 level has proven hard to break.