I have been writing about a number of biotechnology stocks today and someone outpointed Agios Pharmaceuticals (AGIO) to me. AGIO has an attractive set of charts and indicators so let's see if this new name is worth buying.
In this daily bar chart of AGIO, below, we can see that prices have been in an uptrend the past 12 months and have almost doubled from their lows of last June. Prices are above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has also been positive for the past year and tells us that buyers of AGIO have been more aggressive than the sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned up from above the zero line for an outright go long signal.
In this weekly bar chart of AGIO, below, we can see a two year base pattern from 2016 to 2018. The breakout over $70 started the uptrend. Prices are above the rising 40-week moving average line.
The weekly OBV line made a low in early 2017 but has not improved all that much. The weekly MACD oscillator is in a bullish configuration.
In this Point and Figure chart of AGIO, below, we can see an uptrend and a potential price target of $105.66.
Bottom line: AGIO is in an uptrend and traders should approach from the long side. Investors should risk below $80 and traders below $84 looking for gains into the $105-$110 area.
