I reviewed the charts of Rain Oncology (RAIN) on January 5 and recommended that "RAIN shares may continue to trade sideways for a bit longer but further strength is likely in the weeks ahead. Traders could go long RAIN on strength above $9, looking for gains to the $17 area. Risk to $6."
Let's check the charts again.
In this daily bar chart of RAIN, below, I can see that the price of RAIN surged higher in early January and then moved sideways around the past four weeks. RAIN is trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line continues to rise telling me that buyers of RAIN are still more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator has been weakening but remains above the zero line.
In this weekly Japanese candlestick chart of RAIN, below, I see a number of recent spinning tops (small real bodies). A large upper shadow in early January tells me that traders rejected that rally but they may not be looking to sell the next rally. We'll see.
Prices trade above the rising 40-week moving average line. The weekly OBV line is very strong and confirms the price gains. The MACD oscillator is bullish.
In this daily Point and Figure chart of RAIN, below, I can see an upside price target in the $16 area.
In this weekly Point and Figure chart of RAIN, below, I can see an upside price target in the $30 area.
Bottom line strategy: Traders who may have gone long RAIN should continue to hold those longs or consider going long at current levels. Risk to $8. $16 and then $30 are our price targets.
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