Sarepta flying the flag high and tight

• Posted by Greg Harmon
• on June 9th, 2015

Sarepta Therapeutics ($SRPT) is a biopharmaceutical company based in Cambridge Massachusetts. They are making drugs to fight some serious diseases. Some deep stuff. And after over a year of their stock price doing nothing, it seems to be coming back to life.

The chart below shows that long tight consolidation. But then after coming to an agreement with the FDA on submitting rolling NDA it jumped. I have no idea what rolling NDA is but I do know what the price action is saying: BUY.

The stock rose $10 on that news. Over 60%. And since then it has consolidated. You might think that 60% move was enough, but the chart suggests you could see another $10 move very soon. The consolidation since the move up has put the stock back into the Bollinger Bands® and has been tightening against resistance at 26.85. The RSI has remained bullish and strong through this and then MACD pulled back only in a minor way. With the consolidation in a bull flag a break to the upside would look for a move up to 36. And with 45% short interest this is not a pipe dream. Are you ready for this?

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