Guardant Health (GH) is an oncology company that uses its proprietary blood tests, vast data sets and advanced analytics to fight cancer. The stock had a big run-up into early 2021 but has been in a downward trend since then. Let's check out the charts and indicators to see what may lie ahead for Guardant.
In this daily bar chart of GH, below, I see a downtrend in the past year with a downside price gap on huge trading volume that cannot be ignored -- it's pretty dramatic. Prices trade below the bearish 50-day and bearish 200-day moving average lines. The daily On-Balance-Volume (OBV) is bearish as sellers have been more aggressive than buyers the past year. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line, telling us that the trend strength is weak.
In this weekly Japanese candlestick chart of GH, below, the picture and indicators are bearish. Prices are in a longer-term downtrend as they trade below the negatively sloped 40-week moving average line. The weekly OBV line is bearish and has moved to a new low for the move down. The MACD oscillator is bearish, too. The candles are red (bearish) and have yet to show us a bottom reversal and still no lower shadows to suggest that traders are rejecting the lows.
In this daily Point and Figure chart of GH, below, I can see that prices reached a downside price target in the $28-$27 area.
In this weekly Point and Figure chart of GH, below, a $23 price target is projected.
Bottom line strategy: The charts and indicators of GH are bearish and prices are likely to go lower in the weeks ahead. Avoid the long side of GH.
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