Halozyme Therapeutics (HALO) is a biopharmaceutical company "bringing disruptive solutions to significantly improve patient experiences and outcomes for emerging and established therapies". We last covered HALO on March 4, 2021 where we wrote that, "I will assume that traders took profits on HALO on strength in the $48 to $55 area. HALO now looks like it can correct to the $34 to $30 area in the weeks ahead. Stand aside."
Let's check out the charts again as HALO is my "top pick" for the second quarter.
In the daily bar chart of HALO, below, we can see that HALO did decline to the $34-$30 area making a triple bottom around $32 since December. Prices have rallied above the 50-day moving average line and the 200-day moving average line. The slope of the 50-day line has turned positive (bullish).
The daily On-Balance-Volume (OBV) line shows improvement from December as traders have shifted from being aggressive sellers to aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly Japanese candlestick chart of HALO, below, we can see that the shares are breaking the downtrend of the past year and have pushed up above the 40-week moving average line. We can see a bullish engulfing pattern in February to mark a bottom reversal.
The weekly OBV line is starting to slowly improve and the MACD oscillator has made a cover shorts buy signal.
In this daily Point and Figure chart of HALO, below, we can see a potential upside price target of $56. A breakout over $56 is likely to open the way to further gains.
Bottom-line strategy: Traders could buy HALO in the $40-$38 area or on strength. Risk to $35 for now. The $56 area is our price objective for now.
