Gene editing company CRISPR Therapeutics (CRSP) made a basing pattern in the January-July time frame and the indicators support the potential for further price gains. Let's check out the charts.
In this daily bar chart of CRSP, below, we can see that prices declined to a low in May but the base pattern looks like it has been evolving from February. The daily On-Balance-Volume (OBV) line bottomed in February and turned higher in March telling us of a shift from aggressive selling to aggressive buying.
Prices have been crisscrossing the 50-day moving average line since March. CRSP rallied above the 200-day line in early July and now the line is bottoming. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and poised to turn higher.
In this weekly Japanese candlestick chart of CRSP, below, we can see a bottom reversal pattern in early May. Prices have rallied above the 40-week moving average line which is starting to bottom.
The weekly OBV line shows some improvement from February. The MACD oscillator has been rising and is close to crossing above the zero line for an outright buy signal.
In this daily Point and Figure chart of CRSP, below, we can see a potential upside price target in the $103 area.
In this second Point and Figure chart of CRSP, below, we used weekly price data. Here the software suggests a target in the $121 area.
Bottom line strategy: Traders who went long following our July 1 update should continue to hold those positions. The $88-$102 area is our price target.
