During Friday's "Lightning Round" segment of Mad Money, one caller quizzed Jim Cramer about NantKwest (NK) . "I'm going to say yes to this speculative company. I'm fine with it," said Cramer about this a clinical-stage immunotherapy company.
Let's check out the charts.
In this daily bar chart of NK, below, we can see that prices made a base down in the $5 area before rallying in December and soaring into February. NK is trading above the rising 50-day moving average line and is extended (overbought) when compared to the rising 200-day line which intersects down at only $12.
The daily On-Balance-Volume (OBV) line shows strength from the middle of December and the Moving Average Convergence Divergence (MACD) oscillator just crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of NK, below, we can see a large upper shadow above $40 as traders rejected those prices. Prices are at above three times the 40-week moving average line so on this timeframe they are also extended (overbought).
The weekly OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of NK, below, we can see that the software is projecting the $18 area as a potential downside price target.
Bottom line strategy: I don't know that NK will correct all the way down to the $18 area but the charts suggest some sort of correction could occur. Let's stand aside for now and see how things unfold before recommending purchase.
