During the fast-paced 'Lightning Round' of Mad Money Thursday night, Jim Cramer answered a caller about Cytosorbents (CTSO) : "You're fine with this one." Let's check out the charts of this maker of a unique blood purification therapy to control deadly inflammation in life-threatening illnesses in the ICU and cardiac surgery.
In this daily bar chart of CTSO, below, we can see a rounded bottom formation from August through March's correction and retest. Since the March retest prices have been soaring.
CTSO is above the rising 50-day moving average line and above the rising 200-day moving average line. A bullish golden cross can be seen in late March.
The daily On-Balance-Volume (OBV) line has been rising strongly to confirm the bullish price action. The Moving Average Convergence Divergence (MACD) oscillator is also bullish.
In this weekly bar chart of CTSO, below, we can see that prices have rallied after a long decline. Prices are above the rising 40-week moving average line.
The weekly OBV line has turned up strongly and the MACD oscillator is bullish too.
In this daily Point and Figure chart of CTSO, below, we can see that the chart is projecting the $13 area as a price target.
In this weekly Point and Figure chart of CTSO, below, we can see a potential $16 price target.
Bottom line strategy: The chart of CTSO is pointed up but I don't consider CTSO an attractive trade. Maybe it can rally to $13 but I think I would have to risk a close below $8. Not my kind of risk/reward ratio.
