Prices have since regrouped and are pointed higher again. Let's check the latest charts and indicators to see what may now be in store for this pharma.
In this daily bar chart of VRTX, below, we can see an upside gap in late March and another in late July. Volume was heavy in March and still heavier in July. Prices have stayed above the rising 50-day moving average line since February, and any move towards the line has been an opportunity to go long VRTX. There is a bullish golden cross of the 50-day average line crossing above the 200-day line in late March.
The daily On-Balance-Volume (OBV) line has been rising since early 2017 and suggests that buyers of VRTX have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in January and has stayed above it all year. The two averages that make up the oscillator are turning upward for a fresh go-long signal.
In this weekly bar chart of VRTX, above, we can see a bullish set-up. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising since late 2016 and tells us that buyers of VRTX have been more aggressive on this timeframe. The weekly MACD oscillator crossed into bullish territory in March and have maintained a bullish configuration ever since.
There are no gaps on Point and Figure charts, like this one of VRTX, above. The consolidation patterns on VRTX have been rising patterns, instead of the sideways patterns we typically see on many charts. A rising consolidation pattern implies that traders and investors are more aggressive in accumulating shares with higher lows instead of equal lows. This Point and Figure chart yields a potential price target of around $195. Don't be surprised if $200 is touched.
Bottom line: The bull market in shares of VRTX does not want to stop. Trade from the long side, but have a sell stop below $149 in case of a reversal. On the upside $195 and $200 are our next potential price targets.