Intellia Therapeutics Inc. (NTLA) is one of the largest holdings in the iShares Russell 2000 exchange-traded fund (IWM) and one Real Money subscriber wonders if this stock can help the IWM break out of its long, sideways trading range. The company is a pioneer in the development of CRISPR/Cas9 genome editing.
Let's check it out.
In this daily bar chart of NTLA, below, we can see that prices made a six-month base pattern around $75 before the upside price gap in late June. A new high level consolidation has been developing in the past six weeks. Prices are trading above the rising 50-day moving average line and above the rising 200-day line.
The trading volume looks like it has been increasing since November as more traders and investors learn about the company and the science. The On-Balance-Volume (OBV) line is strong and helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is positive.
In this weekly Japanese candlestick chart of NTLA, below, we can see some upper shadows above $165, but also some lower shadows around $120. The slope of the 40-week moving average line is positive, but at just half of the price level some would consider NTLA extended or overbought. The OBV line looks strong and supports the price gains so far. The MACD oscillator is in a bullish alignment.
In this daily Point and Figure chart of NTLA, below, we can see an upside price target in the $199 area.
Bottom line strategy: In our last review of NTLA on June 29, we wrote that "Too bad I did not review NTLA earlier in June. Prices gapped up on Monday on heavy volume, so I would not anticipate much in the way of price weakness to buy. Traders should go long in the $130 area. Risk to $105 while looking for gains to the $280 area."
Traders got a number of opportunities to go long in the $130 area. Continue to hold longs but raise stop protection to your entry price. The $198 area is our first price target with $280 possible longer-term. I don't know if NTLA can excite greater interest in small caps, but it is certainly doing its part. A rally in AMC ( AMC) might help too.
