Jim Cramer's game plan for this week starts with the kickoff of the annual JPMorgan Chase (JPM) healthcare conference on Monday, which will highlight many healthcare stocks that have great growth and don't need a strong economy to keep growing. Cramer told viewers he will be listening to presentations from Bristol-Myers Squibb (BMY) , Johnson & Johnson (JNJ) , Moderna (MRNA) , Regeneron (REGN) and Emergent BioSolutions (EBS) .
On Aug. 13 we reviewed the charts of EBS and wrote that, "If you happen to still be long EBS, I would suggest a stop below $110. The $150 area is our first price target and then $225 is possible longer term." The life sciences company made a double top and then turned lower to ultimately stop out longs in early September.
Let's check out the charts of EBS again.
In the updated daily bar chart of EBS, below, we can see that the shares declined from August into late November before a recovery rally unfolded. Prices are now back above a bottoming 50-day moving average line and a rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows a decline from the middle of August until late November telling us that sellers of EBS have been more aggressive. The turn to the upside for the OBV line is encouraging.
The trend-following Moving Average Convergence Divergence (MACD) oscillator moved below the zero line in early September for a sell signal but recovered above the line last month for a fresh buy signal.