Fairlead Strategies Idea Generator
Alnylam Pharmaceuticals (ALNY) & Updates (BIDU, BJ, EWZ, LSCC)
Before we get to our latest idea, here are a few updates on existing ideas:
We are removing BJ’s Wholesale Club (BJ) from our short ideas because it met (and surpassed) our target with its sharp move lower.
We are removing Baidu (BIDU) from our long ideas because it is poised for a second consecutive close below our stop-loss (~$123). We are also removing the iShares MSCI Brazil ETF (EWZ) from our long ideas because its rally is showing signs of upside exhaustion per the DeMARK Indicators®.
Lastly, we are tightening our stop-loss in short idea Lattice Semiconductor (LSCC) to $81 from $86.
A new short idea is Alnylam Pharmaceuticals (ALNY), which has a classic bearish topping formation on its chart:
ALNY appears to be forming a head-and-shoulders pattern, shown on the chart below. The pattern is typically associated with long-term bearish reversals. A new weekly stochastic downturn, following last week’s gap lower, increases risk that the “neckline” of the pattern near $182 will be breached.
ALNY has negative intermediate-term momentum per the weekly MACD (shown below) and has a new bearish crossover its its monthly MACD (not shown), reflecting weakened long-term momentum. The MACDs increase risk that ALNY resolves the head-and-shoulders pattern lower.
A targeted support level can be gauged by previous resistance from July 2022, near $154. If last week’s gap is penetrated, with two consecutive daily closes above ~$204, that would effectively stop out the short idea.
Alnylam Pharmaceuticals (ALNY, $188.19)
Target: $154
Stop-Loss: $204