We last visited with Sarepta Therapeutics (SRPT) in early September, when we said, "SRPT may or may not dip to fill some of the recent gap. 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."
Over the past two months SRPT has moved higher with a couple of pullbacks. Prices have not yet reached the highs of October 2016, but the charts and indicators still look bullish from my perspective.
In this daily bar chart of SRPT, below, we can see that prices are above the rising 50-day moving average line and there was a success test of the line in late October. The 200-day line also has a positive or bullish slope. The On-Balance-Volume (OBV) line shows a positive trend the past 12 months and supports the case for further gains in the weeks ahead. The Moving Average Convergence Divergence (MACD) oscillator is pointed up and has been above the zero line since late June.
In this weekly chart of SRPT, below, we can see that prices are above the rising 40-week moving average line. There is only a little resistance above the market in the $60-$64 area. The weekly OBV line is rising and is close to making a new high above the prior October high. The weekly MACD oscillator is rising in a bullish configuration.
In this Point and Figure chart of SRPT, below, we can see the uptrend and the possible upside price target of $77.71.
Bottom line: I would raise sell stops to a close below $46 and look for gains to the low $60s followed by the $75 area longer-term.
