TA: Is Pharming worth buying now?

Image: © ABM FN

The biotech group reports a significant increase in turnover, good news, right? Do investors appreciate this with a higher share price? And what else can they expect? The graph, of course, contains the answers to these and many other questions. I will explain the weekly chart for you with a beautiful interplay of lines.

Negative waters

I am not telling the news that from the beginning of this year the bear will be lord and master of the weekly playing field. In a volatile series of lower highs and lower lows, the price is pushed down again and again. All this is made visible by the descent channel. Moreover, all indicators are significantly negative. But there is light at the end of the tunnel. If the chart doesn’t lie, bottom stompers are on the way preparing for a strong rebound.

First a bottom, then a rebound

There is a fierce battle going on at the bottom of the decline channel, with the swing counter at -8 and the RSI below the dynamic OS line. This should be the place on the chart where you can bottom as a prelude to a countertrend move. But then there will be a white one first candle should appear. In other words, it is waiting for and looking forward to bottom pushers, who should ensure that bottoming occurs around 0.86.

If the RSI also enters the game, then a rebound to just €1.00 can be expected, equal to the first Fibo line. The motto will also apply there: “old support becomes new resistance”.

Making anticipatory purchases?

Formally speaking, it is not yet justified to take buying positions. However, the speculative, anticipatory bargain hunters are already seeing their opportunities. Provided the price remains above €0.86, they may consider giving the bulls a helping hand. Others wait politely for the white one candle.

Click here for the Pharming Turbos from BNP Paribas

Nico Bakker has no position in Pharming

Risk warning

Turbos are complex instruments and carry a high risk of rapidly increasing losses due to the leverage effect. 7 in 10 retail investors lose money trading turbos. It is important that you understand how turbos work and that you consider whether you can afford the high risk of loss.

Disclaimer
Nico Bakker is director/owner of BTAC Visual Analysis and affiliated as an independent consultant with BNP Paribas SA (www.bnpparibasmarkets.nl). The information in this publication is not intended as individual investment advice or as an individual recommendation to make certain investments. Every investment you are considering should be tested against your personal investor profile or discussed with your investment advisor. The value of your investments may fluctuate. Past performance is no guarantee for future performance. Bakker’s views and outlooks reflect his technical opinion on the relevant item in his capacity as a technical analyst and consultant. The remuneration of BTAC, Bakker is/was/will not be directly or indirectly related to his specific recommendations or positions in this publication.

At the time of writing, Nico Bakker of BTAC may have a long or short position in one of the underlying assets as described in this document or financial instruments related to this, either privately or commercially. There may also be indirect participations through investment funds, pension funds and/or capital insurance policies in which investments are made and where he or other BTAC employees have no influence on the investment policy. Furthermore, no other potential conflicts of interest are known.

Read the disclaimer regarding investment recommendations that applies to this document here.

Nico Bakker (nicoprbakker.nl) Nico PR Bakker (1957) is director/owner of BTAC Visual Analysis and affiliated with BNP Paribas SA as an independent consultant. He is involved in research, training and coaching in the field of technical analysis for active investors. Various publications by him regularly appear on well-known websites at home and abroad. He also speaks at seminars and conferences and provides TA workshops.