Sarepta Therapeutics Chart Patterns Look Good

 | Sep 07, 2017 | 2:11 PM EDT
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Sarepta Therapeutics (SRPT) gaped higher in July and it gaped higher just the other day - a lot of strength being shown and I doubt it is over. Let's take a look and see what the charts and indicators are showing.

In this daily bar chart of SRPT, below, we see a pattern that at first glance you would not like. This cannot be bullish with declines and downtrends lasting long than the rally phases. Let's dig deeper. That observation is true, but since January what is the pattern you see? Higher lows and higher highs or the simple definition of an uptrend. Yes prices swing up and down and around the moving averages for several months but now prices are above the rising 50-day moving average line and above the flat to turning higher 200-day average line. A bullish golden cross occurred at the end of July when the 50-day line crossed above the 200-day line. The On-Balance-Volume (OBV) line has been rising since early January and confirms the uptrend. The Moving Average Convergence Divergence (MACD) oscillator has moved tightly around the zero line but recently turned up for a fresh outright go long signal.

In this weekly bar chart of SRPT, below, we can see some big swings for SRPT over the past three years -- up and down. Prices are above the rising 40-week moving average line and the OBV line and the MACD oscillator are moving in the right direction with prices.

In this Point and Figure chart of SRPT, below, we can see a base pattern the past year and a fresh upside breakout. A longer-term Point and Figure target in the mid-$60s is readable.

Bottom line -- SRPT may or may not dip to fill some of the recent gap (there is no rule that gaps should be filled by the way). Aggressive traders should buy SRPT at current levels and more on strength. I am not looking to buy a pullback. Risk below $37 for now and set your sights on the October zenith.

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