Royalty Pharma: A Shelby Company Investment? By Order of the Technical Charts!

Six Stocks Worth a Damn

Out of ten thousand bloody stocks only six caught the eye of some number crunchers at CappThesis. One of them's Royalty Pharma RPRX to its friends. They reckon the charts are worth a butcher's. And when someone in this world points you towards a potential earner you listen. Especially when there's a war on.

The Devil's in the Details: Inverse Head and Shoulders

Apparently this RPRX is showing a 'bullish inverse head and shoulders pattern'. Sounds like some pagan ritual doesn't it? But what they mean to say is the stock might be about to turn things around. After a right long tumble they say it's been rallying since December. The trick is watching for that $34 mark. Break through that and we're talking about a potential jump to $39. Not bad for a day's work. Or more likely a year's worth.

Building on Solid Ground

This ain't just a one off. This 'inverse H & S pattern' – fancy that – is sitting on top of a previous breakout zone near $32. They reckon that what was once resistance is now support. Like the Garrison eh? Once you take it you hold it. And if RPRX can hold its own above that $32 mark it suggests a more sustained climb. We've seen worse odds at the races.

A Long Way to Fall a Longer Way to Rise

Zoom out they say. And what do we see? RPRX used to be worth $56.50 back in 2020. Then came the fall. But maybe just maybe that fall has reset everything. New expectations new prices and a fresh start. That 38.2% Fibonacci retracement – don't ask me it's their numbers game – lines up with that $33 breakout zone. So keep your eyes peeled. This area is crucial. In the bleak midwinter we all need a little hope.

Stronger Than the Rest

Relative strength they call it. RPRX is outperforming its biotech mates. Even against that XBI ETF thingy. So it's not just on its own two feet; it's running ahead of the pack. And that's always a good sign in this game. Especially when you're up against the Italians.

By Order of the Technical Analysis

So there you have it. RPRX has bounced back from the bottom but to turn this into a proper upturn it needs to keep breaking out. It's got the chance now. Remember no one is going to save you if you are drowning. You save yourself. This stock might just be our lifeboat but it's still a gamble. As always you've been warned.