If You're in Neurocrine Biosciences Consider Getting Out: Here's Why

Let's check the charts and indicators.

In my last review of Neurocrine Biosciences (NBIX) , I wrote "Continue to hold longs from our earlier recommendation. Raise sell stops to $106 from $96. $139 and $150 are our new price targets."

Prices declined below $106 in early trading Monday so traders should be out of longs. Let's check the charts again.

In this updated daily bar chart of NBIX, below, I can see that prices rallied to just short of $130 and though it was not our price target, I hope that traders managed to use that strength to take some profits. In the past two months prices turned lower and have broken below the 50-day moving average line and is currently testing the 200-day line.

The On-Balance-Volume (OBV) line has stalled the past three months. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish. 

 

In this weekly Japanese candlestick chart of NBIX, below, I can see that prices are testing the 40-week moving average line. The weekly OBV line has diverged from the price action and the MACD oscillator has crossed to the downside for a take profit sell signal.

 

 

In this daily Point and Figure chart of NBIX, below, I can see a potential downside price target in the $87 area.

 

 

In this weekly Point and Figure chart of NBIX, below, I can see the same $87 price target as the daily chart above.

 

Bottom line strategy: Shares of NBIX hit our recommended sell stop and traders should be out of longs. The charts are still weak and further declines look possible.

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