In the "Lightning Round" segment of Mad Money Friday night, Jim Cramer was bullish on Surface Oncology (SURF) , an immuno-onocolgy company developing next-generation antibody therapies. Let's check out a few charts.
In this daily bar chart of SURF, below, we can see that prices have performed strongly since bottoming out in March/early April. SURF is trading above the rising 50-day moving average line and the rising 200-day line. Trading volume is hard to see because the scale has been skewed because of a volume surge in late May.
The On-Balance-Volume (OBV) line shows a slow rise which is positive. The Moving Average Convergence Divergence (MACD) oscillator is bullish at this juncture.
In this weekly bar chart of SURF, below, we can see a large saucer bottom pattern. Prices are trading above the rising 40-week moving average line.
The weekly OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of SURF, below, we can see a projected price target in the $19 area.
Bottom line strategy: It looks like SURF has emerged from a large saucer bottom but we may see a pullback to the breakout area around $10. Patient traders should wait for a correction back to the $10 before going long. The $19-$20 area is our price objective. Use a reasonable stop after purchase.
