Pacific Biosciences of California Inc. ( PACB) is a biotechnology company that develops and manufactures systems for gene sequencing and biological observation. The company was recently raised to an "outperform" (buy) rating at Cowen with a $15 price target.
In my December 6 review of PACB I wrote that "Success in the biotechnology field can come and go so traders need to keep that in mind when they go long. Traders could long PACB around $10 risking to $7. The $26 area is our price target for now."
Let's review the charts of PACB again. PACB is one of my "Best Ideas."
In this updated daily bar chart of PACB, below, I see that share prices are trading between the 50-day moving average line and the 200-day moving average line. Trading above the rising 200-day line is more important, in my opinion, than trading below the 50-day line.
The On-Balance-Volume (OBV) line has leveled off in recent weeks but remains in a longer-term positive trend. The Moving Average Convergence Divergence (MACD) oscillator is improving and stands just below the zero line.
In the weekly Japanese candlestick chart of PACB, below, I see a constructive chart picture. The shares are trading above the rising 40-week moving average line.
The weekly OBV line remains positive. The MACD oscillator is still above the zero line.
In this daily Point and Figure chart of PACB, below, I see an upside price target in the $12 area.
In this second Point and Figure chart of PACB, below, I used weekly price data with a five-box reversal filter. This points to a big upside price target in the $53 area. One step at a time.
Bottom-line strategy: Traders who are long PACB should continue to hold those positions.
