During Tuesday’s “Mad Money” program, Jim Cramer called out Exact Sciences Corp. (EXAS) , which just announced it will be acquiring the privately-held Thrive for $2.1 billion. Shares of Exact Sciences closed up 23% Tuesday.
We reviewed the charts of EXAS on Oct. 8, and wrote that, “EXAS is likely to consolidate its recent gains. I would anticipate some sideways trading in the $110-$100 area for a short period. Aggressive traders could use available weakness to go long risking a close below $95. The $187 area is our price objective.”
Let’s check out the charts again now that prices have surged close to $142.
In this daily bar chart of EXAS, below, we can see that prices traded sideways in the $110-$100 area before surging higher the other day. Traders had plenty of time to buy. Both the 50-day moving average line and the 200-day moving average line have positive slopes now. The trading volume surged and the On-Balance-Volume (OBV) line jumped to a new high telling us that buyers of EXAS have been very aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a go-long signal.