Pacific Biosciences of California Inc. (PACB) is a biotechnology company that develops and manufactures systems for gene sequencing and biological observation. Let's keep it simple, though, with a check of the stock's charts and indicators.
In this daily bar chart of PACB, below, we can see a "classic" saucer bottom formation. The shares bottomed in June/July and have worked higher. Now PACB trades above the rising 50-day moving average line and above the bottoming 200-day moving average line. A bullish golden cross buy signal can be seen in November with the 50-day line crossing above the 200-day line.
The On-Balance-Volume (OBV) line has improved from a low in June and tells me that buyers of PACB have been more aggressive for the past five months. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly Japanese candlestick chart of PACB, below, we see a promising picture. The shares made a major decline/correction in 2021 but then a bottom pattern in 2022. Prices have rallied and now trade above the bottoming 40-week moving average line. The weekly candles are not showing us a top reversal and few upper shadows.
The weekly trading volume has been active since May. The weekly OBV line shows a strong rise from June telling us that buyers are more aggressive. The MACD oscillator is crossing the zero line for an outright buy signal.
In this daily Point and Figure chart of PACB, below, we can see an upside price target in the $26 area.
In this weekly Point and Figure chart of PACB, below, we can see the same $26 price target as the daily chart.
Bottom-line strategy: Success in the biotechnology field can come and go so traders need to keep that in mind when they go long. Traders could long PACB around $10 risking to $7. The $26 area is our price target for now.
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