Back on December 4 I looked at the charts of Halozyme Therapeutics (HALO) , a biotechnology firm focused on novel biological and drug delivery approaches. The chart was pointed up and the indicators were bullish and I wrote that, "I have no understanding or knowledge of the company's fundamentals so you will have to do your own research. What I do know is the stock has made a good base pattern that can support further price gains, in my opinion. Trade it from the long side with a $35 sell stop."
In this updated daily bar chart of HALO, below, we can see that prices have crept higher this month. Our sell stop was never challenged as prices pushed up to new highs. HALO is trading above the rising 50-day moving average line and is a tad overbought when compared to the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has edged higher so far this month telling us that buyers of HALO have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is poised to turn upwards to a fresh outright buy signal.
In this weekly bar chart of HALO, below, we can see that prices have not yet tripled from their base in the $16 area. Prices are above the rising 40-week moving average line.
The weekly OBV line shows a long rise and the MACD oscillator is bullish.
In this daily Point and Figure chart of HALO, below, we can see a price target of $48 being projected.
In this weekly Point and Figure chart of HALO, below, we can see a projection in the $55 area.
Bottom line strategy: Continue to hold long positions but raise stop protection to $38 from $35. $48 and then $55 are our price targets.
