1/3 SET UP ... VRTX ... Swing trade, potentially longer term ....
VRTX is bullish in all time frames, monthly, weekly and setting up on the daily.
The monthly trend is incredibly strong. So strong, it feels as though we may be chasing after results.
The monthly chart is showing price up 8 out of the last 9 months with price now approaching the 2002 highs. (It's this set up that has me focusing on the swing trade time frame. I expect to test those 2002 highs if the trade can trigger.)
Additionally, we have a 20 month moving average crossing up and over a 40 month moving average. This bodes well for the long term view.
Monthly chart:
stockcharts.com[h,a]maclyiay[d20011102,20060102][pb40!b20][vc60]&pref=G
Is there any doubt about the trend on the weekly chart?
Weekly chart:
stockcharts.com[h,a]waclyiay[d20050102,20060102][pb40!b20][vc60]&pref=G
It's the daily chart I'm focusing on, with an eye to the longer term.
After setting a recent price high, we see a 4 bar reversal into a rising 20 day moving average. We have a rising 20 period moving average above a rising 50 period moving average with a comfortable distance between the two. This bullish alignment calls for buying all pull backs into or near the rising 20 period moving average. In this particular case, we also have a bullish reversal pattern in the form of a hammer type pattern. This event is buyable once price trades above Friday's high of the day.
Daily chart:
stockcharts.com[h,a]daclyiay[d20051102,20060102][pb50!b20][vc60]&pref=G
Entry target above $27.90. Price target; looking for $1 to $1.40 initially. Initial stop below $27.20.
I'm looking swing trade first then evaluate for a longer term position.
dabum |
