Nuvalent Has Begun the Bottoming Process

Let's check the charts and indicators.

Nuvalent, Inc. (NUVL) is on the cutting edge of cancer therapies with innovative small molecules. We do not have a lot of trading history but things are looking up on the charts. Let's check.

In this daily bar chart of NUVL, below, we can see that this company went public at the end of last July and had an initial rally to a September high. Prices quickly turned lower as weakness in the broad market took most stocks lower.

NUVL made a low in May and a shallow retest in June. Prices are trading just above the rising 50-day moving average line but below the declining 200-day line.

The On-Balance-Volume (OBV) line was steady to the middle of March and has since soared higher signaling a shift to some very aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator recently moved above the zero line for an outright buy signal. 

 

In this weekly Japanese candlestick chart of NUVL, below, we can see an improving picture. A number of spinning tops and dojis in May appear to mark a bottom reversal. Prices have broken the downtrend from the September zenith (not drawn).

 

The weekly OBV line shows strength from early May in a shift from aggressive selling to aggressive buying. The weekly MACD oscillator is below the zero line but improving.

 

 

In this daily Point and Figure chart of NUVL, below, we can see a potential upside price target in the $24 area.

 

Bottom line strategy: Bottoms are processes and the process has started for NUVL. Traders could put NUVL on their market minders and when the base gets broader we can revisit this name for potential purchase.

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