During Friday's Lightning Round of Mad Money one caller asked about the Fort Meyers, FL headquartered NeoGenomics ( NEO) : "I won't say no to anyone working to cure cancer," replied Jim Cramer. NeoGenomics is a clinical laboratory, pharma services and information services company that specializes in cancer genetics diagnostic testing.
Sounds like a worthy ideal or business but let's see what the charts suggest.
In this daily bar chart of NEO, below, we can see that prices more than doubled this calendar year. Prices have made a number of pullbacks along the way with the rising 50-day moving average line acting as support for much of the rise. The rising 200-day moving average line intersects down around $20.
The scaling on the trading volume makes it hard to read but the On-Balance-Volume (OBV) line shows a rise from January to May, but then it goes flat and makes a bearish divergence when compared to the bullish price action.
The Moving Average Convergence Divergence (MACD) oscillator has been making lower highs from March and is not far above the zero line in a take profits sell mode.
In this weekly bar chart of NEO, below, we can see mixed signals. Prices made a good base in the $8 area before rising for a three-fold increase. NEO is above the rising 40-week moving average line but it does not look extended.
Trading volume has increased in the past 12 months and the weekly OBV line is constructive.
The MACD oscillator has been in a take profits pattern the past three months.
In this Point and Figure chart of NEO, below, we can see a near-by downside price target of $23.
Bottom line strategy: NEO looks technically attractive. Traders could use a pullback to the $23 area to probe the long side with a starter position.
