During "Mad Money" on Monday, Jim Cramer took a question about Vertex Pharmaceuticals (VRTX) .
"This is an amazing company. This is a good stock."
Let's check out the charts of VRTX.
In this daily bar chart of VRTX, below, we can see that prices made a typical or normal correction in March with a successful test of the rising 200-day moving average line. The 50-day moving average line has a positive slope. The daily On-Balance-Volume (OBV) line shows a strong rise from October and only a very slight dip in early March telling us that traders and investors in VRTX held their positions during March and have continued to be aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is turning upwards again for a fresh outright go-long signal.
In this weekly bar chart of VRTX, below, we can see a long consolidation pattern around the $180 level. Prices broke out to the upside in October 2019 and have made a significant markup. VRTX is above the rising 40-week moving average line but not extended above it. The MACD oscillator has been bullish since October 2019.
In this Point and Figure chart of VRTX, below, we used daily price data. A potential price target of $374 is being projected.
Bottom line strategy: If long VRTX, then continue to hold those positions and consider raising your sell stops to a close below $265. The $300 and then the $360 to $375 area are our price objectives; $360 is doubling from the consolidation pattern mentioned above.
