During Thursday's Mad Money Lightning Round segment host Jim Cramer fielded questions about stocks from various callers. One caller asked Cramer about Dynavax Technologies (DVAX) . "It's good. I love these little drug stories," responded Cramer.
Let's check out the charts of this biopharmaceutical company that develops and commercializes novel vaccines.
In the daily bar chart of DVAX, below, we can see two base patterns that have supported the rally so far. On the far left hand side of the chart is a sideways pattern around $4 followed by a breakout and rally to the $10 area. For six months DVAX trades around the $10 area and then breaks out for a rally to $20. Prices are trading above the rising 50-day moving average line and the rising 200-day line.
It is hard to see what the trading volume has been doing on this chart but the On-Balance-Volume (OBV) line has moved in a positive direction and confirms and supports the price gains this year. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside for a fresh outright buy signal.