For his "Executive Decision" segment of Mad Money Monday night, Jim Cramer spoke with Kevin Conroy, chairman and CEO of Exact Sciences Corp. (EXAS) , a stock that's up 80% for the year. In addition to reporting earnings Monday, EXAS announced a deal to acquire Genomic Health (GHDX) for $2.8 billion. Conroy said he can't wait to see what the combined companies can accomplish. Genomic Health makes tests to screen for breast and prostate cancers which will pair with Exact Sciences' colon cancer screening.
Let's screen the charts and indicators for a trading recommendation.
In the daily bar chart of EXAS, below, we can see an uptrend from August or from December as either starting point works. EXAS ended Monday above both the rising 50-day moving average line and the rising 200-day line.
Trading volume swelled and the daily On-Balance-Volume (OBV) line declined as prices closed a fraction lower. The trend-following Moving Average Convergence Divergence (MACD) oscillator narrowed toward a possible future cross to the upside and new buy signal.
In the weekly bar chart of EXAS, below, we can see an impressive rise over the past three years -- from near $10 to over $120. There were some corrections along the way that tested and even broke the rising 40-week moving average line.
The weekly OBV line pushed up to a new high in the past three months to confirm the new price highs. The weekly MACD oscillator has narrowed in the past few weeks but it remains well above the zero line in bullish territory.
In this Point and Figure chart of EXAS, below, we can see a potential upside price target of $162.65 being projected.
Bottom-line strategy: Barring a reversal to the downside, traders could approach the long side of EXAS from around $115. Risk a close below $110. The $160 area is our upside price target.