Technical Analysis of Pacific BioSciences (PACB)Disclaimer: I own shares of PACB at the time of publishing this analysis.
The below analysis is not a trading or investment recommendation & is only for learning purpose.
1.PACB has been in a major downtrend like most other small caps & biotech stocks.
2.The stock is way below the 200DMA which sits around $25.
3.The spread between the 20DMA & 200DMA is also very wide indicating a pull back to the 200DMA.
4. The stock bottomed at $9.04 which was followed by some buying pushing the price up to $11.65 while still being under the 20DMA
5. Over the last two weeks the stock has been consolidating & with today’s huge igniting volume, the stock has seen a decisive close
above the 20DMA & formed a massive green Marubozu candle engulfing 11 other candles to it’s left.
6. Today’s price action shows a strong bullish sentiment & the first major target for the stock should be the 200DMA around $25.
7.While the stock tries to reclaim the 200DMA, it is expected to face resistance around$14, $15.5, $18-$20 (fairly strong resistance)
& $22-$24.
8. On the higher time frame charts as well, namely weekly & monthly, PACB has been forming a falling wedge pattern which
considered a bullish pattern.
9. Key areas of support would be the mid-point & low of today’s Marubozu candle, followed by the low point of the downtrend at
$9.04.
10.A close below $9.04 provides could mean further acceleration of price downwards to the next level of support in the $7.5- $8
area.
All the best!
