Harmony Biosciences (HRMY) specializes in developing and delivering treatments for rare neurological diseases that others often overlook. A worthy cause. A sell-side firm raised their fundamental rating on the company Friday to "buy" with a $61 price target. Let's check out the charts and indicators.
In the daily bar chart of HRMY, below, we can see a sideways to higher market. The shares made lows in January and May and then a higher low in September is trying to gain traction. The 50-day moving average line has been oscillating higher the past year and the 200-day moving average line shows a rise.
The movement of the On-Balance-Volume (OBV) line shows us up and down action but weakness since early August. The Moving Average Convergence Divergence (MACD) oscillator is poised to cross above the zero line for a new outright buy signal.
In the weekly Japanese candlestick chart of HRMY, below, we can see a more positive picture of the price action. A pattern of higher lows can be seen and a rally above $56 will refresh the uptrend. The slope of the 40-week moving average line is positive.
The weekly OBV line looks stronger than the daily line. The MACD oscillator is above the zero line and narrowing towards a new buy signal.
In this daily Point and Figure chart of HRMY, below, we can see a potential downside price target in the $41 area. A trade at $49.52 will refresh the uptrend.
In this weekly Point and Figure chart of HRMY, below, we can see an upside price target in the $62 area.
Bottom-line strategy: Aggressive traders could buy available weakness in HRMY risking a close below $41. Conservative traders should wait for strength above $49 before going long. Our price target is $62 for now.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.