Rain Oncology (RAIN) (formerly Rain Therapeutics) is a late-stage oncology company that is focused on developing therapies that target oncogenic drivers to genetically select patients. RAIN was rated a new fundamental buy here on Thursday by a sell-side firm with a $16 price target. Let's check out RAIN's charts and indicators to see where its shares may go from here.
In this daily bar chart of RAIN, below, I can see that prices declined to a low in May/June before a spirited rally into August. Prices have corrected sideways since August but now seem poised for renewed gains. RAIN is trading above the rising 50-day moving average line and above the bottoming 200-day moving average line. The On-Balance-Volume (OBV) line surged higher in August with a volume spike, but the line has remained steady with renewed strength showing in November. The Moving Average Convergence Divergence (MACD) oscillator is just slightly above the zero line.
In this weekly Japanese candlestick chart of RAIN, below, I see a promising picture. Prices made a low in May and then turned higher. Prices trade above the 40-week moving average line. The weekly OBV line is more bullish than the daily chart. Here the OBV line continues to rise from July, telling me that buyers of RAIN are more aggressive than sellers. The MACD oscillator moved above the zero line in December for an outright buy signal.
In this daily Point and Figure chart of RAIN, below, we can see an upside price target in the $16 area.
In this weekly Point and Figure chart of RAIN, below a price target of $17 is indicated.
Bottom line strategy: RAIN shares may continue to trade sideways for a bit longer but further strength is likely in the weeks ahead. Traders could go long RAIN on strength above $9, looking for gains to the $17 area. Risk to $6.
