Vertex Pharmaceuticals ( VRTX) is scheduled to report their latest quarterly top- and bottom-lines on Tuesday after the close of trading. Let's check out the charts and indicators of this Boston-based pharma name.
In this bar chart of VRTX, below, I see a mixed picture. Prices are in a longer-term uptrend but we may be seeing a small double top in the $320-$325 area. Prices pulled back to test the rising 200-day moving average line and a close below the early January low will turn the trend lower and could precipitate further declines.
The trading volume has been steady instead of increasing and the On-Balance-Volume (OBV) line shows a steady rise into late January. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line, but has crossed to the downside for a take-profit sell signal.
In this weekly Japanese candlestick chart of VRTX, below, I can see some small upper shadows above $320 telling me that traders are rejecting the highs. The weekly OBV line has been stalled the past four months. The weekly MACD oscillator has been weak and has made a bearish divergence compared to the price action for several months.
In this daily Point and Figure chart of VRTX, below, I can see a potential downside price target in the $241 area.
In this weekly Point and Figure chart of VRTX, below, I can see the same $241 price target as the daily chart above.
Bottom line strategy: I have no special knowledge of what VRTX will tell shareholders tomorrow but the charts suggest that some price weakness could unfold.
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Previously know as Pinduoduo, weak consumer spending has plagued the stock.
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