During Thursday's Lightning Round segment of Mad Money, one caller asked Jim Cramer about Jazz Pharmaceuticals (JAZZ) . "This is a speculative company that makes money. I like it. You're in good hands," responded Cramer.
What do the charts say?
When we last looked at JAZZ way back on Aug. 21, 2020, we recommended that "Traders could go long JAZZ around $125 risking a close below $115 for now. Our price objectives are $135 and then $173."
Let's check out the latest charts of JAZZ.
In the updated daily bar chart of JAZZ, below, we can see that our trade recommendation in August worked out nicely with our $173 price target getting reached in January. What now? Prices are testing key resistance around $180 and look strong. JAZZ is trading above the rising 50-day moving average line as well as above the rising 200-day line.
The On-Balance-Volume (OBV) line was steady from November to April but now looks like it is restarting its uptrend as traders are being more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator has just turned upward to a new outright go long signal.
In the weekly bar chart of JAZZ, below, we went back four years to see if there was a lot of chart resistance around $180. There is some activity in the $180 to $200 area but it is way back from 2015 and, in my opinion, represents only psychological resistance and not likely to be old longs waiting six years to "get even." The shares are in a strong position -- in an uptrend above the rising 40-week moving average line.
The weekly OBV line is bullish and stronger looking than the daily line. The MACD oscillator is crossing to the upside for a fresh outright buy signal. The height of this chart pattern going back four years or more suggests a longer-term price target in the $260 area.
In this daily Point and Figure chart of JAZZ, below, we can see a recent new high and a potential price target in the $216 area.
In the weekly close only Point and Figure chart of JAZZ, below, we see a tentative price target in the $244 area.
Bottom-line strategy: Traders could go long JAZZ at current levels and on strength above $180. Risk to $169 for now. Our price targets going forward are $216, $244 and then $260.
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