Low-Priced Amyris Could Surprise on the Upside

A look at the charts of this small-cap provider of bioscience services.

During Thursday evening's Lightning Round segment of Mad Money one caller asked Jim Cramer about Amyris Inc. (AMRS) . "This is a very interesting story and I like it," replied Cramer.

Let's check out the charts of this small-cap biosciences name.

In the daily bar chart of AMRS, below, we can see that the shares have traded sideways for the past 12 months. Within the sideways pattern we can see a decline into the March low followed by a good recovery and new highs in early June. Prices are above the rising 50-day moving average line and above the flat 200-day moving average line. We can see a recent bullish golden cross of these two averages.

The daily On-Balance-Volume (OBV) line has been moving higher from its March low and signals to us that there has been a shift to more aggressive buying since March. The Moving Average Convergence Divergence (MACD) oscillator has been in a take profits sell mode this month but narrowing toward a new buy signal. 

 

In the weekly bar chart of AMRS, below, we can see a potential base pattern being developed since late 2018. Prices are above the bottoming 40-week moving average line.

 

The weekly OBV line shows a basing/positive trend since late 2018 and has come on strong in the past four months. The MACD oscillator is just now pushing above the zero line for an outright go long signal. 

 

 

 

In this daily Point and Figure chart of AMRS, below, we can see a potential price target in the $14.25 area. 

 

 

 

 

Bottom-line strategy: AMRS is a new name for me and I want to exercise a little more caution. Traders could go long but I would only buy strength. Go long on strength above $4.68 and above $6.00. Risk to $3 for now with the $14 area our longer-term price objective. 

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