In our last update of Biohaven Pharmaceutical (BHVN) on June 9 we recommended: "Risking below $84, traders could go long BHVN at current levels looking for gains to $155 later this year." BVHN is trading just below its late July high so this is a good time to check under the hood.
In this updated daily bar chart of BHVN, below, prices are in an uptrend trading above the rising 50-day moving average line which was successfully tested earlier this month. The slope of the 200-day moving average line is positive.
The On-Balance-Volume (OBV) line made a bullish move higher into early July. The slightly lower movement of the OBV line does not look like a problem.
The Moving Average Convergence Divergence (MACD) oscillator just turned higher for a fresh outright buy signal.
In this weekly Japanese candlestick chart of BHVN, below, we can see a strong bottom formation in the $40 area. Prices have tripled from that base pattern but are still looking up.
The weekly OBV line is positive. The weekly MACD oscillator has narrowed in recent weeks but we may not get a crossover.
In this daily Point and Figure chart of BHVN, below, we can see a potential upside price target in the $163 area - a little higher than the $155 target we have previously.
In this weekly Point and Figure chart of BHVN, below, we see a longer-term $188 price target.
Bottom line strategy: Continue to hold previously recommended longs. Raise stops to $115 from below $84. The $155-$163 area is our first price target with $188 after that.
