For his final "Executive Decision" segment of Mad Money Wednesday evening, Jim Cramer checked in Kevin Conroy, president, chairman and CEO of EXACT Sciences Corp. (EXAS) , makers of Cologuard, the colon cancer screening test that replaces traditional colonoscopies for some people.
Conroy said that cancer remains the second largest killer in our country, claiming 600,000 people a year. Yet despite those numbers, most people are still not tested for most cancers. That's why the early data from their multi-cancer screening test is so important. It can detect up to six cancers 84% of the time with very low false-positive rates.
Exact Sciences is also active in Covid-19 testing. Conroy said his company has tested hundreds of thousands of people in all 50 states and he couldn't be more proud of his team and the diagnostic industry which is stepping up to help their communities.
Let's see what the charts of EXAS look like now.
In this updated daily bar chart of EXAS, below, we can see that prices made a white-knuckle decline from February to March but rebounded into late July. The July-September correction was not so deep to question the resumption of the rally. EXAS exploded higher in late September on heavy turnover. Prices surged above the popular moving averages to new 2020 highs.
The On-Balance-Volume (OBV) line also quickly climbed to a new high to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator quickly turned from bearish to bullish.
In this weekly bar chart of EXAS, below, we can see that prices are now poised to retest the highs of 2019 in the $120-$125 area. Prices are above the now rising 40-week moving average line.
The OBV line just made a new high over the highs of 2019 and 2020. Impressive. The MACD oscillator crossed above the zero line last month for a fresh outright buy signal.
In this daily Point and Figure chart of EXAS, below, we can see that the software is projecting the $187 area as a potential price target.
Bottom line strategy: EXAS is likely to consolidate its recent gains. I would anticipate some sideways trading in the $110-$100 area for a short period of time. Aggressive traders could use available weakness to go long risking a close below $95. The $187 area is our price objective.
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