BioMarin Pharmaceutical (BMRN) has been trading sideways for the past year, but beneath the surface accumulation has been under way. It will only take some modest improvement in our indicators to tell us the trend is about to change to up from sideways.
In this 12-month daily chart of BMRN, above, we see the overall trend is neutral, but don't stop there. Notice the pattern of higher lows from February to June and then early November? Now look at how the 200-day moving average line has behaved. In September through November, the 200-day average has changed from down to sideways to turning up. The On-Balance-Volume (OBV) line makes a low in February and then rises until mid-September. A move of the OBV to a new high as BMRN rallies over $102 will turn the chart bullish again.
In this weekly chart, above, we can see BMRN made a serious correction last year, falling from over $150 to nearly $60. The weekly OBV line is telling us a very bullish story. The price of BMRN and the OBV line rise together in 2014 and then levels off. BMRN makes that $90 decline and the OBV line only dips in November, December and January. The OBV line turns up promptly and confirms the price strength we see on this chart. A weekly close above $100 is bullish and could be the start of a rally to the $130 level.
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Let's check American Well Corp after it got destroyed in this tough market.
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