• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

BioMarin Pharmaceutical Is Ready to Start a Fresh Advance

Here's where aggressive traders could go long BMRN.
By BRUCE KAMICH
Jan 12, 2022 | 08:48 AM EST
Stocks quotes in this article: BMRN

For his second "Executive Decision" segment of Tuesday's Mad Money program, Jim Cramer spoke with J.J. Bienaime, chairman and CEO of BioMarin Pharmaceutical (BMRN) , which presented this week at the JP Morgan Healthcare Conference.

Bienaime said things are progressing very well for its treatment for Hemophilia A, Roctavian. He said the Phase 3 trials continue and is the largest study of Hemophilia A patients ever conducted. There are approximately 150,000 patients worldwide.

BioMarin is also diversifying into other areas. Bienaime said it just introduced a new growth treatment for children with a rare condition called achondroplasia (a hereditary condition in which the growth of long bones by ossification of cartilage is retarded). BioMarin is the only approved treatment for this condition, which represents a $3 billion market opportunity. The treatment will cost $250,000 per year.

In our last review of BMRN way, way back on November 15, 2019, we wrote that "Use sideways price action in BMRN to build a long position." After a lengthy sideways range it looks like BMRN is ready to move to the upside.

In this daily bar chart of BMRN, below, we can see a bear trap in late October. Prices declined to a new low for the move down but were quickly rejected and rapidly turned higher on increased volume. Trading volume has remained more active as prices have rallied. BMRN is trading above both the rising 50-day and the bullish 200-day moving averages. We can see a bullish golden cross buy signal in late November when the 50-day line crossed above the 200-day line.

The On-Balance-Volume (OBV) line actually shows a rise from March and tells me that traders have been more aggressive buyers for several months now. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in early November for an outright buy signal.

In this weekly Japanese candlestick chart of BMRN, below, we can see a large bullish engulfing pattern in October to mark the bottom reversal of BMRN. Prices are above the rising 40-week moving average line. The weekly OBV line shows improvement from October. The MACD oscillator is in a bullish alignment above the zero line.

In this daily Point and Figure chart of BMRN, below, we used close only price data. Here the chart suggests a rally to the $107 area.

In this weekly close only Point and Figure chart of BMRN, below, we used a five box reversal filter. Here the software suggests a $156 price target.

Bottom line strategy: Aggressive traders could go long BMRN on strength above $92. $107 is our first target and $156 our second price target. Risk to $81.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Drug Approvals | Investing | Stocks | Technical Analysis | Trading | Pharmaceuticals | Mad Money | Executive Interview

More from Investing

Accenture Forms a Bottom With Strengthening Indicators

Bruce Kamich
Jun 1, 2023 7:58 AM EDT

As we check the charts, I have two price targets.

The Cost of Investing in Retail Looks Steep

Ed Ponsi
Jun 1, 2023 7:00 AM EDT

Let's look at the risks to the sector and what could be a safe buy.

Watching Emotions on Wall Street

Helene Meisler
Jun 1, 2023 6:00 AM EDT

When investors get giddy right at the peak of a market move, it's time to pay attention.

AI Lightens Up a Bit but Market Remains Lopsided

James "Rev Shark" DePorre
May 31, 2023 4:29 PM EDT

Tech giants like Apple carry more weight as narrow market continues.

What Price Number Is Five9 Dialing Up? Let's Check the Charts

Bruce Kamich
May 31, 2023 2:22 PM EDT

This call center software company could be making a double-bottom pattern. Here's what that means for investors.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • 09:48 AM EDT CHRIS VERSACE

    AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login