Agios Pharmaceuticals (AGIO) is pioneering therapies for genetically defined diseases, with a near-term focus on developing therapies for hemolytic anemias (a blood condition that occurs when your red blood cells are destroyed faster than they can be replaced). The science is above my pay grade but the chart is showing a base pattern so it has my attention.
In this daily bar chart we can see a price decline to a June low followed by a rally above the 50-day moving average line and the slower-to-react 200-day line. A pullback into late July helps to define the bottoming action.
The On-Balance-Volume (OBV) line shows a decline into a June low followed by a rising pattern telling us that AGIO traders have shifted from aggressive sellers to aggressive buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned bullish at the end of June.
In this weekly Japanese candlestick chart of AGIO, below, we can see a bottom reversal pattern in June. Prices have rallied above the declining 40-week moving average line. The weekly OBV line shows improvement from early June. The MACD oscillator crossed to the upside in June for a cover shorts buy signal. An outright buy signal needs a crossing of the zero line.
In this daily Point and Figure chart of AGIO, below, we can see a potential upside price target in the $44 area.
In this weekly Point and Figure chart of AGIO, below, a $51 price target is being projected.
Bottom line strategy: Aggressive traders could go long AGIO on a dip back to the $30 area. Risk to $24 for now. The $44 area is our first price target.
