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.
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.
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.
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.
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(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.)
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