Intellia Therapeutics Inc. (NTLA) is one of the largest holdings in the iShares Russell 2000 exchange-traded fund (IWM) and one Real Money subscriber wonders if this stock can help the IWM break out of its long, sideways trading range. The company is a pioneer in the development of CRISPR/Cas9 genome editing.
Let’s check it out.
In this daily bar chart of NTLA, below, we can see that prices made a six-month base pattern around $75 before the upside price gap in late June. A new high level consolidation has been developing in the past six weeks. Prices are trading above the rising 50-day moving average line and above the rising 200-day line.
The trading volume looks like it has been increasing since November as more traders and investors learn about the company and the science. The On-Balance-Volume (OBV) line is strong and helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is positive.
In this weekly Japanese candlestick chart of NTLA, below, we can see some upper shadows above $165, but also some lower shadows around $120. The slope of the 40-week moving average line is positive, but at just half of the price level some would consider NTLA extended or overbought. The OBV line looks strong and supports the price gains so far. The MACD oscillator is in a bullish alignment.
In this daily Point and Figure chart of NTLA, below, we can see an upside price target in the $199 area.
Get an email alert each time I write an article for Real Money. Click the “+Follow” next to my byline to this article.
If you have questions, please contact us here.