Skip to main content

Ionis Pharmaceuticals, Inc. (IONS) - Get Ionis Pharmaceuticals, Inc. Report was upgraded by TheStreet'sQuant Rating service on Thursday. This might be just the push needed to generate a breakout from a bullish set of charts. I cannot say that I ever heard of IONS before today but I can say that I like this quantitative input as it draws my attention to companies I would have missed.

Check out these charts.

In this daily bar chart of IONS, below, going back 12 months I can see a large consolidation pattern bounded by around $40 on the downside and the $55-$56 or so area above. There have been three attempts to break out on the upside and we may be seeing the fourth. 

Image placeholder title

IONS is above the rising 50-day moving average line and the rising 200-day line. The On-Balance-Volume (OBV) line has been quietly creeping higher since late March to confirm the advance. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero since late April and is likely to turn up again to a fresh go long signal.

In this weekly chart of IONS, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line started to improve in June of last year and the weekly MACD oscillator is in a bullish configuration above the zero line.

Scroll to Continue

TheStreet Recommends

Image placeholder title

In this Point and Figure chart of IONS, below, we can see that a trade at $58 would be a significant upside breakout and open the way for a price projection of $81.

Image placeholder title

Bottom line: Aggressive traders could go long IONS here and add to the position at the $58 breakout point. Risk a close below $50 for now.

Click here to sign up for Quant Ratings, where you can read our full report on IONS or more than 4,000 other stocks that our service rates in real time every market day. However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks. 

(This column originally appeared Thursday on Real Money, our premium site for active traders. Click here to get great columns like this from Jim Cramer and other writers even earlier in the trading day.)

Employees of TheStreet are restricted from trading individual securities.