We reviewed the charts of Supernus Pharmaceuticals ( SUPN) in late August and wrote that "Aggressive traders could approach the long side of SUPN around $33, risking below $30 for now. The $58 area is our longer-term price target."
With SUPN making new 52-week highs Thursday, let's check the charts again.
In this daily bar chart of SUPN, below, we can see that prices have turned upward in November and early December. Prices are above the rising 50-day moving average line and above the slower-to-react and rising 200-day moving average line.
The On-Balance-Volume (OBV) line has been moving sideways the past four months but is now close to making a new high for the move up. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment.
In this weekly Japanese candlestick chart of SUPN, below, we can see that prices have moved higher the past three years in an upward sloping channel. Prices are above the rising 40-week moving average line. The weekly OBV line shows us a positive trend the past three years. The MACD oscillator is bullish.
In this daily Point and Figure chart of SUPN, below, we can see a price target projected to the $58 area. In our last review this target was on the weekly chart.
In this weekly Point and Figure chart of SUPN, below, we used a five box reversal filter. Here the chart projects a potential target in the $66 area.
Bottom line strategy: Traders who are long SUPN from our previous recommendation should continue to hold, but raise stops to $33 from below $30.
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