• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Can Rhythm Pharmaceuticals Keep Up This Tempo?

The stock has surged amid an analyst upgrade.
By BRUCE KAMICH
Aug 08, 2022 | 03:01 PM EDT
Stocks quotes in this article: RYTM

Rhythm Pharmaceuticals  (RYTM) was raised to a "buy" recommendation by an influential sell-side firm Monday. Shares of this commercial-stage biopharmaceutical company have soared sharply in recent weeks so we want to see how we should proceed.

 
In the daily bar chart of RYTM, below, we can see that the shares were trading below $4 back in May and June and then soared to above $24 Monday. Wow. Prices have retreated from their best levels but still remain well above the rising 50-day and the rising 200-day moving averages.
 
The trading volume surged in June and July but is less robust in August so far. The On-Balance-Volume (OBV) has climbed sharply the past six to seven weeks to confirm the price gains. The 12-day price momentum study shows a small bearish divergence as prices made new highs but the indicator did not.
 
 
In this weekly Japanese candlestick chart of RYTM, below, we can see a "measured move" rally in recent weeks. The shares are trading above the rising 40-week moving average line.
 
The weekly OBV line confirms the price gains while the slow stochastic indicator tells us that the rally is extended (overbought).
 
 
In this daily Point and Figure chart of RYTM, below, we can see that prices reached and exceeded a price target of around $8.
 
 
In this weekly Point and Figure chart of RYTM, below, we can see a price target in the $36 area.
 
 
 
Bottom-line strategy: RYTM could trade higher and we have a $36 price target but the problem is what do we risk? With the shares overbought the risk is prices decline right after we go long. Let's stand aside until we can find a relatively low risk entry point.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | Stocks | Technical Analysis | Biotechnology | Pharmaceuticals | Analyst Actions

More from Stocks

Intel Suddenly Looks Swell, So Here's How I'd Play It

Bob Byrne
Jun 1, 2023 9:00 AM EDT

The semiconductor giant went from breakdown to breakout in a matter of days, which makes it an interesting trade opportunity.

Accenture Forms a Bottom With Strengthening Indicators

Bruce Kamich
Jun 1, 2023 7:58 AM EDT

As we check the charts, I have two price targets.

The Cost of Investing in Retail Looks Steep

Ed Ponsi
Jun 1, 2023 7:00 AM EDT

Let's look at the risks to the sector and what could be a safe buy.

The AI Theme Destroyed the Economic Bears, But Now What?

James "Rev Shark" DePorre
Jun 1, 2023 6:37 AM EDT

About 90% of stocks are still struggling, but many market players are celebrating.

Watching Emotions on Wall Street

Helene Meisler
Jun 1, 2023 6:00 AM EDT

When investors get giddy right at the peak of a market move, it's time to pay attention.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • 09:48 AM EDT CHRIS VERSACE

    AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login