During Monday night's Lightning Round of Mad Money one caller asked about Ionis Pharmaceuticals Inc. (IONS) : "This is a battleground. I like Seattle Genetics (SGEN) ," said Jim Cramer. SGEN is a new name to me so let's check out the charts and indicators.
In the daily bar chart of SGEN, below, we can see that the prices have just about doubled in the past 12 months. The rally in the past two months has been pretty impressive with a recent strong upside gap. SGEN is above the rising 50-day and the rising 200-day moving average lines.
The On-Balance-Volume (OBV) line has turned upward in the past two months to support and confirm the price advance and tell us that buyers of SGEN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a strong bullish configuration above the zero line.
In the weekly bar chart of SGEN, below, we went back four years to see the full size of the multi-year consolidation pattern and upside breakout. Prices are above the rising 40-week moving average line.
The weekly OBV line has been moving upward with the price action telling us that buyers of SGEN have been more aggressive. The weekly MACD oscillator is bullish and pointing higher.
In this Point and Figure chart of SGEN, below, we can see the recent rally and a potential upside price target of $147.
Bottom-line strategy: Because SGEN has a bullish setup on its charts I would not wait for any dip or pullback to go long. Try to buy a position around $100, risk below $94 for now. Our price objective is $147.
