Replimune Breaks Out: Could Rise 30% From Here

Let's check out the charts and indicators of this biotech name.

Replimune Group Inc. (REPL) is doing cutting-edge work in the field of new cures for cancer. They are "pioneering a novel class of tumor-directed oncolytic immunotherapies (TDOI) designed to kill the tumor locally, alter the tumor microenvironment, and ignite a powerful patient-specific immune response."

Let's check out the charts and indicators to see if the charts are also cutting edge.

In the daily bar chart of REPL, below, I can see a bottoming pattern playing out from February. Prices made a "left shoulder" in February/March. A "head" in May/June and a "right shoulder" in September. Using your imagination you can draw a horizontal line across $21 to show a "neckline."

The shares broke out to the upside earlier this month. Notice the very heavy trading volume to accompany the upside breakout -- this is "escape velocity" volume. The On-Balance-Volume (OBV) line declined into September and the "right shoulder" but the line has turned upwards in December to confirm the price gains.

The Moving Average Convergence Divergence (MACD) oscillator is bullish.

 

In the weekly Japanese candlestick chart of REPL, below, I see a positive technical picture. Prices have turned upwards and trade above the rising 40-week moving average line. A strong white (bullish) candle marks the upside breakout from the base pattern.

 

The weekly OBV line shows a rise from September. The MACD oscillator has moved above the zero line for an outright buy signal.

 

 

In this daily Point and Figure chart of REPL, below, we can see that the shares have reached and exceeded an upside target of $24.50.

 

 

In this weekly Point and Figure chart of REPL, below, we used a five-box reversal filter. Here the software suggests a price target in the $36 area.

 

 

Bottom-line strategy: Investing in new medical approaches can be risky for sure but the charts of REPL look promising. Traders could look to go long REPL on a dip to around the $24 area. Risk to $20. The $36 area is our first price target.

 

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