• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Sangamo Therapeutics Shows Promise

Let's check out the charts of SGMO and come up with a trading strategy.
By BRUCE KAMICH
Mar 09, 2020 | 01:37 PM EDT
Stocks quotes in this article: SGMO, BIIB

For his first "Executive Decision" segment of Mad Money Friday night, Jim Cramer spoke with Sandy Macrae, president and CEO of Sangamo Therapeutics Inc. (SGMO) , a biotech company whose shares rose 4.9% after the company announced a new partnership with Biogen (BIIB) .

Macrae explained that the partnership with Biogen allows Sangamo to perform early-stage research on a number of genes that Biogen is interested in and Biogen will then help to develop and commercialize the drugs that come from that research. Sangamo is currently working on treatments for both Alzheimer's and Parkinson's disease.

Let's check out the charts of SGMO.

In the daily bar chart of SGMO, below, we can see that the stock has been trading lower the past 12 months but declines have been followed by steep recovery rallies. SGMO is currently below the declining 50-day moving average line as well as the declining 200-day moving average line.

The pattern of volume is hard to "read" but the daily On-Balance-Volume (OBV) line has been in a decline from July telling us that sellers of SGMO have been more aggressive for months.

The 12-day price momentum study in the lower panel shows higher lows from December even though prices have made lower lows. This difference between the price action and the momentum study is a bullish divergence and tells us that the pace of the decline has been slowing and this can sometimes foreshadow a rally or a price recovery.

In this weekly bar chart of SGMO, below, we can see that prices have been in a decline since early 2018. Prices are below the declining 40-week moving average line.

The weekly OBV line has been following the price action but the 12-week price momentum study shows equal lows in momentum from October and this is bullish divergence when compared to the price action.

Bottom-line strategy: The charts of SGMO, above, are showing early signs of bottoming with the bullish divergence from the momentum study. Put SGMO on your shopping list but wait until we see some stability in the broader market, which might not happen until later this month.

Join Jim Cramer's special Action Alerts PLUS members-only call to prepare your investment strategy during the economic fallout from the coronavirus and as oil prices fall amid a price war.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Biotechnology | Healthcare | Pharmaceuticals | Mad Money | Executive Interview

More from Stocks

End to China's Recovery Shows Policymakers 'Care About Growth, Just Not Much'

Alex Frew McMillan
Aug 15, 2022 6:12 AM EDT

Poor July numbers erase hopes of a strong second half to the year, where lockdowns and the 'zero-Covid' policy have undermined confidence and activity.

Almost Every Single Chart Has Resistance Overhead

Helene Meisler
Aug 15, 2022 6:00 AM EDT

Unless we get breadth red for some meaningful number of days, we won't get back to even a moderate oversold condition. We simply remain overbought.

Bearish Bets: 3 Stocks You Should Think About Shorting This Week

Bob Lang
Aug 14, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

This Small Advertising-Tech Stock Could Offer a Big Opportunity

Bret Jensen
Aug 14, 2022 7:00 AM EDT

Let's check a covered-call play in PubMatic.

To Improve Your Trading and Investing, Spend More Time on Exit Points

James "Rev Shark" DePorre
Aug 13, 2022 10:00 AM EDT

For many investors, the best way to sell is to have a highly mechanical system that removes subjectivity.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • 01:44 PM EDT STEPHEN GUILFOYLE

    This Holding Lights Up With Strong Earnings

    Check out the latest from TheStreet's Stocks Under...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login