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Sangamo Therapeutics, Inc. (SGMO) Technical Analysis 29/08/2017

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) gained 7.48% in yesterday’s session, going up from its prior closing price of $10.70 to $11.50, and has now recorded rally in 6 consecutive sessions. It is uncommon for a stock to keep rising for so many consecutive days so a temporary pullback is likely. The stock price went upward in 5 of the last 10 days, but has retreated -0.86% over the same course of time. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 0.80 million more shares exchanged hands compared with prior day. In total, 1.96 M shares exchanged hands for about $22.54 million.

Inside SGMO’s Recent Trend

Sangamo Therapeutics, Inc. (SGMO) enjoys staying at the middle end of a sharp increasing trend in a short period of time and issued considerable signs about additional rally. Short-term traders are predicted to see a rally of 37.08% over the course of a quarter and, with 90% chance the price will be floating in the range of $12.80 and $16.61 in this timeframe.

Sangamo Therapeutics, Inc. Technical Signals



SGMO has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of an uptrend. Upon corrections, the price will meet support from the averages between $10.48 and $9.61. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Friday August 18, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $10.25 and $9.50. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $11.60.




It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Sangamo BioSciences approaches the first support point just current price at $10.25. In case of a break, the next support we will see from accumulated volume is going to be at $9.50 and $9.20. Accumulated volume is going to prevent the price from rising further at $11.60 and this action will lead the price to take a temporary pause or stay muted for a few days.

Sangamo Therapeutics, Inc. (SGMO) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.75 between high and low, or 6.91%. The average volatility for the past week stood at 6.16%.

Since the Sangamo BioSciences has been rising for 6 straight session, the volatility is more likely to increase in the next couple of days. We don’t expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

 

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