Readers of Real Money sometimes email me with questions about stocks they are interested in. Time permitting, I make an effort to respond to all emails. Most of the time I just respond to the subscriber but sometimes the stock catches my attention. One subscriber asked about what I thought of Immunomedics (IMMU) . The company is a clinical-stage biopharmaceutical company that is "developing monoclonal antibody-based products for the targeted treatment of cancer and other serious diseases".
Let's check out the charts of this cutting edge company to see what the upside or the downside looks like.
In this daily bar chart of IMMU, below, we can see three tests of the $12 area over the past year. Each time prices got down to around the $12 area - January, June, and October - buyers entered and lifted prices. Since the low in October prices have rallied to make a new high for the year.
IMMU is above the rising 50-day moving average line and above the rising 200-day line. In early November we can see a bullish golden cross of the 50-day line and the slower-to-react 200-day line. This math-driven buy signal is typically late but it can be effective in long-trending markets.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and in a bullish configuration.
In this weekly bar chart of IMMU, below, we can see a strong rally from 2017 to 2018 taking prices from around $4 to over $26 before a correction down to around $12. A new base has formed from around $12 and now prices have firmed back to the underside of the $22-$27 top area. Prices are above the rising 40-week moving average line.
The weekly OBV line has been strong in recent months and is at a new high for the move up - a bullish set-up and confirms the price gains this year.
The weekly MACD oscillator moved above the zero line in late October for an outright go long signal which continues today.
In this Point and Figure chart of IMMU, below, we can see a potential longer-term price target of $40.50 being projected. A trade at $28 will be a fresh breakout on this chart.
Bottom line strategy: Aggressive traders could go long IMMU in the $22-$21 area risking a close below $17 for now. $40 is our longer-term price target.
