During the Lightning Round segment of Mad Money Friday night one caller inquired about Kura Oncology (KURA) : "This has personalized cancer treatments and I like it for speculation," said Jim Cramer. Let's check and see what the charts look like.
In the daily bar chart of KURA, below, we can see that prices are showing us two trends. One trend is a downtrend from July into October. This decline is a concern but the longer pattern is a sideways trend from January. So far this year prices have found buying interest around $13 and resistance at $17 and $21. Prices are currently below the flat 50-day and flat 200-day moving average lines.
The daily On-Balance-Volume (OBV) line shows a decline into early October and then a rise. The decline tells us that sellers were more aggressive and the rise tells us that buyers are now more aggressive.
The 12-day price momentum study in the lower panel shows higher lows from August to September, which tells us that the pace of the summer decline slowed. The lower prices brought in buyers who slowed the decline.
In the weekly bar chart of KURA, below, we can see that prices have been in a large triangle formation since late 2017. A triangle formation is a continuation pattern so at some point (hopefully soon) prices will resume their prior trend, which was up. Prices are currently below the flat 40-week moving average line.
The weekly OBV line shows a long sideways pattern with fresh strength from June of this year. The Moving Average Convergence Divergence (MACD) oscillator is close to an upside cross and longer-term cover shorts buy signal.