On his "Mad Money" show on Monday night, Jim Cramer welcomed back David Moatazedi, CEO of Evolus Inc. (EOLS) , the competitor of Allergan's (AGN) Botox.
The company's shares are up 48% so far in 2019.
Moatazedi said Evolus launched Jeuveau, the anti-wrinkle Botox rival, on May 15 and easily surpassed the first 90-day sales goals. Based on current trends, his product will be the No. 2 player in the space within its first 24 months.
So let's smooth out wrinkles and look at the charts this morning.
In this daily bar chart of EOLS, below, we can see that prices have been trading tightly between the rising 200-day moving average line and the rising 50-day moving average line. The price pattern looks like it could be a small triangle pattern.
The On-Balance-Volume (OBV) line is up from its late May low, but it has slipped a little from the middle of July. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line, but the two moving averages that make up the indicator are extremely close, which means that a turn up or down is touch or go.
In this limited weekly bar chart of EOLS, below, we can see higher lows from April 2018 to December 2018 to June of this year. Prices are testing the underside of the flat 40-week moving average line. A close above the 40-week moving average line would improve the technical picture. The weekly OBV line looks more positive than the daily line. The weekly MACD oscillator is below the zero-line, but poised for a bullish crossover.
In this close only Point and Figure chart of EOLS, below, we can see a projection for an upside price target in the $28 area.
Bottom line strategy: If EOLS has formed a small triangle pattern the past few weeks we should see a breakout before we reach the apex. I favor an upside breakout.
