Shares of NovoCure Ltd. (NVCR) have been surging to new highs in a rally that got under way back in July. Prices have doubled in just three months so let's review the charts for a strategy that makes sense.
In this updated daily bar chart of NVCR, below, we can see that prices have broken above the highs of December-February. NVCR is in a strong advance and well above the rising 50-day moving average line and the rising 200-day moving average line. We can see a bullish golden cross of the 50-day line and the 200d-ay line in early September.
The On-Balance-Volume (OBV) line began its climb in late June leading the price action. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late July.
In the weekly bar chart of NVCR, below, we can see a bullish picture. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line is close to a new high to confirm and support this advance. The MACD oscillator crossed the zero line in August for an outright buy signal.
In this Point and Figure chart of NVCR, below, we used weekly close-only prices and filtered out "jiggles" of less than five boxes. The result is this chart with a potential price target in the $344 area.
Bottom-line strategy: NVCR rebased from March to July before launching its current advance. The $150 area is a big number and an upside price target from a bar chart. The $344 area is a longer-term Point and Figure target. Aggressive traders could go long NVCR at current levels, risking a close below $100 for now. The $150 area is our first target.
