The biopharmaceutical firm Cytokinetics (CYTK) develops muscle activators as potential treatments for debilitating diseases in which muscle performance is compromised. My cardiologist probably understands how their treatments work but not me. I will check out the charts instead.
In the daily bar chart of CYTK, below, we can see an uptrend from last July. In light of the stock market's weakness this is impressive strength. CYTK is trading above the rising 50-day moving average line and above the 200-day line which has acted as support many times in the past year.
The On-Balance-Volume (OBV) line shows a steady rise the past year and confirms the price gains as buyers of CYTK remain aggressive with more volume traded on days when CYTK has closed higher. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of CYTK, below, we can see nearly a five-fold advance in price over the past three years. Like the daily chart -- impressive. Prices are trading above the rising 40-week moving average line.
The OBV line is in a rising phase. The MACD oscillator has been above the zero line for much of the past three years.
In this daily Point and Figure chart of CYTK, below, we can see a potential upside price objective in the $71 area.
In this weekly Point and Figure chart of CYTK, below, we see a price target of just $61, which is lower than the daily price target. Typically the longer-term targets are higher.
Bottom-line strategy: Aggressive traders could go long CYTK at current levels risking to $35 (below the rising 200-day moving average line). Our price targets are $61 and then $71.
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