Revance Therapeutics, Inc. (RVNC) has reversed directions in a short time frame. Earlier this month I reviewed the charts and indicators of RVNC and wrote that "Traders could buy strength above $34.50 risking below $29.50. Look for gains to the $39-$40 area."
Looking back over the latest charts we can see that prices were unable to rally to $34.50 but have sunken below $29.50 and below the cresting 200-day moving average line. Let's see what else has weakened.
In this daily bar chart of RVNC, below, we can see that the 50-day moving average line is still declining. The daily On-Balance-Volume (OBV) line has moved lower this month signaling to us that sellers of RVNC have been more aggressive with more volume being transacted when prices have closed lower on the day.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line (again) in an outright sell mode.
In this weekly bar chart of RVNC, below, we can see technical weakness since our last review. RVNC is now trading below the rising 40-week moving average line.
The weekly OBV line has declined to a new low for the move down and tells us that sellers have been more aggressive on this time frame. The MACD oscillator is still pointed down in a bearish configuration.
In this Point and Figure chart of RVNC, below, we can see the new low for the move down and a bearish price target of $22.35.
Bottom line: RVNC was unable to break out on the upside and instead turned lower. Prices may find some buying support around $26 but the risk is for a decline to the $22 area - our Point and Figure target.