BioMarin Pharmaceutical (BMRN) was reviewed earlier this month. I wrote that, "BMRN has improved recently. The upswing is welcomed but it still is not an important breakout of the two-year sideways pattern. I will be missing the bottom but I think waiting for a weekly close above $100 is the best way to invest in BMRN." Since May 11th BMRN has pushed up to a new high for the move up and the slope of the 200-day moving average line has turned positive. Instead of sitting on my hands for a clearer breakout I want to probe the long side. Read on.
In this updated daily bar chart of BMRN, below, we can see that the broader sideways trading range is still in place but in the past month BMRN has stayed above both the rising 50-day average line and the now rising 200-day line. The daily On-Balance-Volume (OBV) line has been steady this month and volume has recently increased. The trend-following Moving Average Convergence Divergence (MACD) oscillator dipped a little but is turning upwards again.
In this weekly bar chart of BMRN, below, we can see some improvement over the past two weeks. Prices are above the now rising 40-week moving average line. The weekly OBV line is now showing good strength and the MACD oscillator is ready to cross above the zero line for an outright go long signal.
In this Point and Figure chart of BMRN, below, we can see an upside price target of $108.41 but a trade at $94.55 will be a new bullish development.
Bottom line: I could have said to go long BMRN earlier but now I feel more confident in my recommendation. Traders could go long BMRN here and above $94.55 looking for $108-$110 on the first leg to the upside. Risk below $84.
