My strategy for buying Beam Therapeutics

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Beam Therapeutics (BEAM) creates precision genetic drugs with basic editing to treat serious diseases. It’s avant-garde.

Let’s look at charts and indicators.

In this daily bar chart from BEAM, below, we can see that prices have doubled from the lows in the May-June to July-August periods. Impressive. Prices topped the 50- and 200-day moving averages in July and August, but have since fallen back below these mathematical indicators.

The On-Balance-Volume (OBV) line bottomed out in May and remained strong through September. The Moving Average Convergence Divergence Oscillator (MACD) is below the zero line in sell territory.

In this weekly Japanese candlestick chart from BEAM, below, we see a picture with more positives than negatives. Prices rallied above the 40-week moving average and continued to trade around it. Trading volume has been strong over the past four months and tells us that investors are showing increased interest in the stock.

The OBV line has spiked since early May, signaling a strong return to aggressive buying. The MACD oscillator is above the zero line.

In this daily Point and Figure chart from BEAM, below, we can see an upward price target in the $75 area.

In this weekly Point and Figure chart from BEAM, below, we can see a downside price target at the $27 area.

Background strategy: BEAM shares may trade sideways to slightly lower in the days and weeks ahead. Ideally, it would be positive if BEAM held the $50 level, but the markets do what they want to do. Strength above $62 is positive and should be bought by traders.

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