SGMO Looking Ripe For Upside Reversal

After losing roughly 85% of its value from its lofty peak in March 2014, Sangamo Biosciences ([stock_quote symbol=”NASDAQ:SGMO”]) is looking ripe for a major trend reversal to the upside. Price is at the level of a long term trend line dating back to October 2002, and after a doji on the weekly last week and a likely close for this week above last week’s high, we may have a bullish reversal on our hands. Taking a look at the long term monthly chart…

…you can see the long term channel, and that price this month has essentially reached the bottom. This represents a low risk, high reward entry position long term on the chart. In addition, despite taking a beating over the last couple years, SGMO as a company has very low debt, which is one of the key fundamentals I look at when deciding to enter a position.

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