CRISPR Therapeutics (CRSP) is soaring to new highs today. I last looked at CRSP back on October 5 and wrote that, "I am not yet convinced that CRSP can rally strongly BUT a close above $89 tells me that traders could go long risking a close below $80. Take profits around $102 if available."
Prices rallied in October to around $110 and then retreated into early November. We could say that was a "good call" except after the pullback prices have nearly doubled in about two months.
Yes, you read that right. What do the charts and indicators suggest now?
In this daily Japanese candlestick chart of CRSP, below, we can see that prices consolidated around the $150 area before its latest spike higher. CRSP is trading above the rising 50-day moving average line and should be considered extended above the rising 200-day moving average line which intersects down around $82 or so. With prices of CRSP more than double the 200-day line it meets my criteria for being extended or overbought.
The On-Balance-Volume (OBV) line was steady from July to late November and has since turned higher to confirm the price gains.
The Moving Average Convergence Divergence (MACD) oscillator has been very strong and bullish since early November.
In this weekly Japanese candlestick chart of CRSP, below, we can see that prices made a base pattern around the $40 area and multiples of $40 have turned out to be price targets - we just passed the four-fold target of $160. Prices are above the rising 40-week moving average line.
The weekly OBV line is strong and tells us that buyers of CRSP have been more aggressive for a log time. The MACD oscillator is bullish.
In this Point and Figure chart of CRSP, below, we twisted and turned and tweaked the parameters to come up with a new and higher price target. We used weekly price data with a five-box reversal instead of the standard three-box filter. A potential target of $230 is being shown. A daily Point and Figure chart only had a target of $140 which was left in the dust.
Bottom line strategy: If you are still long CRSP then you are way smarter than me. Longs should risk to $145. The round number of $200 and then the Point and Figure target of $230 are the price objectives for now.
