Aimmune Therapeutics, Inc. (AIMT) was mentioned on Jim Cramer's "Mad Money" last night during the Executive Decision section. AIMT is a biopharmaceutical company that is active in developing treatments for potentially life-threatening food allergies.
(For more on AIMT, see "The Name of the Game Is Growth: Cramer's 'Mad Money' Recap")
As someone with a grandson who is allergic to peanuts I am adding this to my watch list, but let's check out the charts and indicators.
In this daily bar of AIMT, below, we can see that prices made a minor topping pattern in December-February and a modest correction followed. The slope of the 50-day moving average line turned lower and is now flat.
The rising 200-day moving average line has been tested a number of times and prices are below both lines now.
The On-Balance-Volume (OBV) line showed a positive trend from July to early February. There was a sharp downward adjustment in the OBV line in late February but the line has been improving again.
A rising OBV line suggests that buyers of AIMT have been more aggressive. In the lower panel is the 12-day price momentum study which shows higher lows from late February. Comparing this action in the momentum study to the lower prices into early April is a bullish divergence. A rally back above $34 is needed to restore the uptrend.
In this weekly bar chart of AIMT, below, we can see an uptrend from $10 in mid-2016. Prices are below the 40-week moving average line but the slope of the average line is still positive.
The weekly OBV line turned down in early 2018 and suggests that sellers have been more aggressive for months.
The weekly Moving Average Convergence Divergence (MACD) oscillator has narrowed greatly and could cross to the upside for a buy signal if prices firm from here.
In this Point and Figure chart of AIMT, below, we do not have an upside price target but a rally to $35 will improve the picture.
Bottom line: As a concerned grandparent I will follow this company. As a technical analyst I am interested in the stock on strength above $34 and above $35.