The biotechnology company based in Carlsbad, California that specializes in discovering and developing RNA-targeted therapeutics, Ionis Pharmaceuticals Inc. (NASDAQ: IONS) shows signs of an upcoming price surge according to its latest charts.
Bullish Indications
#1 Channel Breakout: The daily chart shows that the stock was trading within a channel for the past few months. This channel is marked in the daily chart in pink color lines. Currently, the stock has broken out of this channel and formed a strong bullish candle, indicating that it has the potential to surge ahead.
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Daily Chart – IONS
#2 Above MA: The stock is currently trading above its short-term moving average of 50-day SMA, indicating the overall bullishness of the stock.
#3 Bullish ADX and DI: The ADX indicator shows bullishness because the ADX line and the (+DI) line are greater than the (-DI) line and the ADX line has started to raise from below both (+DI) and (-DI) lines.
#4 Bullish Stoch: The stochastic is currently moving up from oversold levels and the %K line (blue color) is currently above the %D (orange color) line in the daily chart. This usually indicates bullishness.
#5 Bullish RSI: The RSI is above 50 and moving higher in the daily chart, which is a possible bullish indication.
#6 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as an orange color dotted line. IONS had historically taken support at this level multiple times before bouncing higher. The stock had recently bounced higher from this level. This is a possible bullish sign.
Weekly Chart – IONS
#7 Bullish MACD: The MACD line is currently above the MACD signal line in the weekly chart, indicating possible bullishness.
#8 Bullish ADX and DI: The ADX indicator shows bullishness in the weekly chart as well, as the ADX line and the (+DI) line is greater than the (-DI) line and the ADX line has started to raise from below both (+DI) and (-DI).
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, the ideal buy level for IONS is above its 200-day SMA. This translates to a price of around $53.00.
TP: Our target prices are $60 and $70 in the next 3-6 months.
SL: To limit risk, place a stop loss at $48.50. Note that this stop loss is on a closing basis.
Our target potential upside is almost 13% to 32% in the next 3-6 months.
For a risk of $4.50, our target rewards are $7.00 and $17.00. This is almost 1:2 and 1:4 risk-reward trade.
In other words, this trade offers 2x to 4x rewards when compared to risks.
Risks to ConsiderThe stock may reverse its overall trend if it breaks down with high volume from the channel. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
— Tara
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