In this daily chart of SNY, above, we can see the sideways basing action since November. Dips or declines to $38 have been bought. The 50-day moving average line has turned bullish with a positive slope. SNY is currently testing the declining 200-day line. A close above the 200-day line could even happen today. The On-Balance-Volume (OBV) line tracks buying intensity, and while it was flat from February it turned up in June. We can also add in a bullish divergence to the mix. In May and June prices made a lower low but the momentum study made a higher low -- in other words, the rate of decline slowed. A slowing rate of prices can foreshadow a turn to the upside.
In this three-year weekly chart of SNY, above, we can see that prices are above the 40-week moving average line. The weekly OBV line has been much stronger than the daily line. Here the OBV line has been very strong since March/April. The Moving Average Convergence Divergence (MACD) oscillator generated a cover shorts buy signal in March and is moving up toward an outright buy signal if it can cross above the zero line.
Bottom line - SNY is poised to closed above the 200-day line. Aggressive traders can take this as their first buy signal. A daily close and then a weekly close above $44 (the April peak) should be counted as the second and third buy signals. Our first upside target is the $50 to $52 area and a close below $40 would extend the base.