The charts of Cytokinetics (CYTK) have caught my attention. Let's take a look at this late-stage bio-pharmaceutical company that is focused on muscle activators and inhibitors as potential treatments for people with debilitating diseases in which muscle performance is compromised and/or declining.
In this daily bar chart of CYTK, below, we can see that prices have tripled since the recent March low. Impressive. Prices are above the rising 50-day moving average line and the rising 200-day moving average line.
Notice that the On-Balance-Volume (OBV) turned up back in November and the strong rise in this indicator confirms the big price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator is positive.
In this long-term weekly bar chart of CYTK, below, we used a "log scale" to plot the data. Here we can see a 10 year base pattern.
Prices have recently broken out on the upside so we are not too late to the game. Prices are above the rising 40-week moving average line and the weekly OBV line is strong.
In this weekly close only Point and Figure chart, below, we can see a potential longer-term price target in the $52 area.
Bottom line strategy: Traders could go long CYTK at current levels risking a close below $20. Our potential longer-term price target is the $52 area.
