A caller to Mad Money Monday night asked about Seattle Genetics Inc. (SGEN) : "I have faith in them. That was a great quarter," said Jim Cramer the host.
Let's check out the charts.
In the daily bar chart of SGEN, below, we can see that prices have been stuck in a sideways trading range with lower highs seen in October, April and probably July. Prices are currently above the recently rising 50-day moving average line and the still declining 200-day line.
Despite the sideways movement of prices the daily On-Balance-Volume (OBV) line shows a decline from early February to the middle of July which tells us that sellers of SGEN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has largely kept close to the zero line, which suggests little trend strength.
In this weekly bar chart of SGEN, below, we can see that prices are above the declining 40-week moving average line. The weekly volume bars have been declining for most of this year.
The weekly OBV line shows weakness and the MACD oscillator is hugging the zero line.
In this Point and Figure chart of SGEN, below, we can see an upside price target of around $103 but a trade at $81.44 for a breakout.
Bottom-line strategy: Aggressive traders could look to go long SGEN around $75 risking below $70 with a $100 price target.
