Exact Sciences Corp. (EXAS) was mentioned during the "Lightning Round" on Jim Cramer's Mad Money program Wednesday night. Jim said, "Better than expected. I liked the numbers." OK. Let's also take a couple minutes to look at the charts and indicators.
In the daily bar chart of EXAS, below, we can see a stock chart that looks very hard to trade or even just to buy and hold. Downside gaps, upside gaps, whipsaws with the moving averages. All very difficult to anticipate or even to react to. We do have an uptrend from April and we do have a bullish 50-day average line and a bullish 200-day average line now.
The daily On-Balance-Volume (OBV) line generally moves up from a February low to generally confirm the advance. The Moving Average Convergence Divergence (MACD) oscillator just generated a cover shorts buy signal.
In the weekly bar chart of EXAS, below, we can see an impressive advance over the past three years. The 40-week moving average line has had a positive slope the entire time and prices are currently above the line.
The weekly OBV line has been neutral all year but it has not hurt the rally. The weekly MACD oscillator has been above the zero line for most of the past three years and looks to be turning upward to a fresh buy signal.
In this Point and Figure chart of EXAS, below, we can see an upside price objective of $110. A trade at $81.44 will be bullish.
Bottom-line strategy: Aggressive traders could go long above $81.50 if they can risk below $70. My longer-term upside price target is $110.
