by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
Yesterday, we looked at a Daily Price Chart of Chegg, Inc., noting the stock has been making a series of 52–Week Highs since early May.
Today’s Chart of the Day is for Immunomedics, Inc (NYSE: IMMU)
Immunomedics, Inc., a clinical–stage biopharmaceutical company, develops monoclonal antibody–based products for the targeted treatment of cancer. Its advanced antibody–drug conjugates are sacituzumab govitecan and labetuzumab govitecan, which are in advanced trials for various solid tumors and metastatic colorectal cancer, respectively. The company focuses on commercializing sacituzumab govitecan as a third–line therapy for patients with metastatic triple–negative breast cancer in the United States.
Now, the Daily Price Chart below shows that IMMU is in a price uptrend because the current price of IMMU is trading higher than it was exactly six months ago.
The On Balance Volume (OBV) chart is shown below the Daily Price Chart.
Here’s what you need to know about the OBV Line: it measures how much volume is either pushing the stock up, or down. Meaning, the volume of stock that’s being sold or bought.
Using a stock’s volume in this way can confirm a downtrend by reflecting that more people are selling the stock than are buying it. Take a look at the chart below…
We can see from the OBV chart shown above that the On Balance Volume line for IMMU is sloping up.
An up–sloping line indicates that the volume is heavier on up days and buying pressure is exceeding selling pressure.
Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend.
The numerical value of the On Balance Volume line is not important. We simply want to see an up–sloping line to confirm a price up trend, which is displayed in the chart above.
We’ll be sure to keep following Immunomedics, Inc., as the stock’s buying pressure exceeds it’s selling pressure and the price uptrend continues.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On April 27th, we highlighted DexCom Inc. (NYSE: DXCM), noting that DXCM’s monthly price was trading above the 10–Month SMA.
If you happened to have purchased DXCM shares on that day, you’d already be up 21.24%.
But… if you had purchased the right option contract, you would be up 157.8% in just four days time!
That’s the power of options.
Editor, Chart Of The Day