"They do a lot of good work and I like companies working on cancer," replied Jim Cramer to a caller asking about Global Blood Therapeutics Inc. (GBT) during the Lightning Round segment of Mad Money Tuesday evening. Let's check out the charts of this company with an FDA-approved therapy for sickle cell disease.
In the daily bar chart of GBT, below, we can see that prices have corrected down in two legs to the cresting 200-day moving average line. Chart support should be expected in the $55-$45 area.
The daily On-Balance-Volume (OBV) line has not declined that much when compared to the price decline in the past two months. The OBV line has actually been very steady in the past month.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but this indicator looks like it could cross to the upside for a cover shorts buy signal.
In this second Point and Figure chart of GBT, below, we used weekly close-only price data and scaled the chart in the "traditional" manner with even dollar increments. Here a downside price target of $56 is indicated.