United Therapeutics (UTHR) is a biotechnology company that is involved in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening cardiovascular and infectious diseases and cancer.
Let's check out the charts.
In the daily bar chart of UTHR, below, we can see a strong rally from early March. Prices surged above the 50-day and 200-day moving averages in May and the slopes of these two lagging indicators turned positive.
The On-Balance-Volume (OBV) line has moved up sharply with the price action telling us that buyers of UTHR have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but poised to either turn higher or lower depending on the price action ahead.
In the weekly Japanese candlestick chart of UTHR, below, we can see a positive picture. Prices are in a longer-term uptrend above the rising 40-week moving average line.
The weekly OBV line has been neutral the past year but the longer-term trend is up. The MACD oscillator is in a strong buy.
In this daily Point and Figure chart of UTHR, below, we can see that prices have reached a $225 price target.
In this weekly Point and Figure chart of UTHR, below, we can see that prices reached a $233 price target.
Bottom-line strategy: UTHR could push higher but I believe the stock could move sideways in the $250 to $220 area before renewed gains. Traders who are long might consider trimming their positions as we could get a better buying opportunity in the weeks ahead.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.