Acceleron Pharma Inc. (XLRN) is a clinical-stage biopharmaceutical company with a very bullish chart. Let's check it out.
In this daily bar chart of XLRN, below, we can see that prices gapped higher in late January and only made a modest correction in February/March as the broad market plunged at the start of the pandemic. Prices quickly resumed their advance with some corrections and consolidations along the way. XLRN is trading above the rising 50- and 200-day moving average lines. The trading volume has been on the quiet side but the On-Balance-Volume (OBV) line shows a nice rise the past year as buyers of XLRN have been more aggressive, with heavier volume traded on days when the stock has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has been swinging above and below the zero line the past 12 months.
In this weekly bar chart of XLRN, below, we can see a six-year base formation around the $30 area. Prices began to improve within the base in 2018 and just exploded on the upside this year. Prices are trading above the rising 40-week moving average line. The weekly OBV line has been strong since 2017. The MACD oscillator has been bullish since late 2019.
In this weekly Point and Figure chart of XLRN, below, we can see a potential upside price target of $200.
Bottom line strategy: The Point and Figure chart currently suggests a price target of $200, but the size of the base suggests we could see $300 or a ten-bagger from the base around $30. Look to buy a pull back into the $120-$110 area and then risk below $100.
