This Tesaro (TSRO) stock chart update will take a look at some shorter and longer-term trends for its share price.

But first, take a read of this article that talks about some different revenue projections for Tesaro (TSRO). It links to an article from Investors Business Daily. These revenue projections from a few different analysts are then being used to justify a $200+ price target for Tesoro’s share price.

Tesaro’s Rumored Sale Could Fetch North Of $200 Per Share: Analysts

One thing about the stock market that most people don’t realize – it is nothing more than the “perception” of people’s valuations. Sure, you can use hard metrics like P/E ratios and the like. But just like most things in life, something is only worth as much as someone else is willing to pay for it.

So typically I am thrilled when analysts start talking about price projections that have been on my radar from previous updates. It helps set expectations for other investors that may not use technical analysis. By using technical analysis though, we can set very specific price targets and also have key items to watch for to further confirm the price action.

Let’s review some of TSRO’s chart action and any indicators it may provide.

Tesaro (TSRO) Stock Chart Review

Upside Price Targets

Let’s start out with a 3 year daily candlestick, Tesaro (TSRO) stock chart. It has 3 different Fibonacci Extension Tools overlaid on the chart, a black, green and a blue one. The black one is the longest-term for calculating price targets. The blue tool on this chart is calculating medium-term price targets. And last, the green tool is the shorter-term price calculation targets.

The MACD Histogram has been showing a lot of selling momentum, the most selling momentum since the uptrend began. However, I don’t think all of this selling momentum will carry Tesoro’s share price anywhere other than its supporting trendline. As long as selling volume is light as it approaches the supporting trendline, look for the trendline support to hold.

If the MACD Histogram starts rounding out and then begins to show its next decrease in selling momentum, I’m anticipating it will also happen as the share price approaches the trendline.

Analyzing a 3 Year Tesaro (TSRO) Stock Chart Using Fibonacci Extension Tools

Let’s get back to the Fibonacci Extension Tools and their placements. When you see a stock’s price action have support, resistance or just volatility near a Fibonacci Tool’s[s2If !current_user_can(access_s2member_level1)]….

If you want to continue reading this article for Tesaro (TSRO), you must first login. Not only do I look at pullback areas of support for Tesoro’s share price, but I also review the probabilities and calculations of higher price targets.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] 100% and 161.8% Target Lines, that gives me greater confidence that I’ve placed the tool mostly accurate on its chart. The green Fibonacci Extension Tool seems to align especially well with the price action.

Let’s build off the green Fibonacci Extension Tool’s placement. The blue Fibonacci Extension Tool’s 100% Target Line intersects with the green 261.8% Target Line. This confidence in the green Fibonacci Extension Tool then starts to rub off on the blue tool because of the confluence of the Target Lines.

TSRO – Elliott Waves

This is a 3 year daily chart for Tesaro (TSRO) where I’ve illustrated the first Bullish Impulse wave pattern with black trendlines. I then illustrated what I think is the next Bullish Impulse wave pattern that TSRO’s share price is developing and how this pattern will help its share price arrive at an estimated $220 price target in the short-term.

Elliott Wave Analysis on a 2 Year Chart for Tesaro (TSRO)

In its current Bullish Impulse wave pattern, TSRO’s share price saw resistance at the blue 161.8% Target Line and then proceeded to pullback. It found support from the 100% Target Line from the blue Fibonacci Extension Tool. Look for the MACD Histogram to confirm the next leg up by starting to show a decrease in selling momentum. This should happen by mid-week.

The key share price for this Bullish Impulse wave pattern to continue playing out is $157.77. If TSRO’s share price continues correcting and prints a $157.76 during the pullback, the blue Bullish Impulse wave pattern is nullified. This also indicates that TSRO is going through the correction of a larger potential chart pattern and more time will be needed during the consolidation period.

However, as long as TSRO’s share price stays at $157.77 or above, the chances for a $200+ price target are significantly increased. The increases will most likely happen at a rapid pace too, just like they did from the $140 to the $190 area.

TSRO – Monthly Candlestick Review

Let’s take a look at TSRO’s longer-term trends by looking at a monthly candlestick chart. This 5 year monthly candlestick chart shows that TSRO’s share price is seeing its first slow-down in buying momentum this month. This is the first slow-down since TSRO’s uptrend began almost a year ago.

Analyzing Longer-Term Trends on a Monthly Candlestick Chart for Tesaro (TSRO)

While I did not illustrate it, I can see a potential Bullish Impulse wave pattern that appears complete above. The 3 tall green candlesticks for September, October and November 2016 could be the middle of the pattern or its Wave 3. That pattern will not be confirmed until March 2017 passes by and April’s candlestick development is under way though. Longer-term perspectives take longer-time frames to confirm or negate a pattern. But watching short-term indicators can provide earlier clues.

While the MACD Histogram does show its first slow-down, there is still plenty of buying momentum to help its share price move higher. Slow-downs in the MACD Histogram typically indicate a top area is near. A “near-top” seems to be confirmed with my Elliott Wave analysis above where I am expecting one last push in the current uptrend up towards the $220 area.

Just to take a completely bearish look at the above chart, for no other reason than to look at downside risk from the current share price, and the upper shadow from the Doji candlestick pattern in December 2016 should provide support. The upper shadow from the Doji candlestick pattern is the $143 price level.

So if the market does not cooperate, the level where TSRO’s share price should bounce after continued pressure is the $143 area. A continued pushdown for TSRO’s share price is not what I anticipate, but it always helps to know the downside risk levels are as not to panic during a pullback.

Tesaro (TSRO) – Summary

Rumors swirl and biotechnology stocks continue to quietly creep upwards in price. Could biotechnology stocks benefits from a “sector rotation” play in the cards over the next couple of weeks? If so, look for Tesaro (TSRO) to push upwards of the $200 price area and towards the $220 level.

Without the benefits of sector rotation, TSRO could even see its own share price continue to increase based on additional buy-out rumors. But since this is the first showing of slowing buying momentum, continue holding for the short-term and see if TSRO’s share price can reach the $220 shorter-term price target.

If you are not currently long shares of TSRO but do want to jump in on its uptrend, watch for its share price to find support at its trendline around the $160 area. If it does, and starts to rebound in strong buying volume, catch the trade to the upside area of $220. Save some of the purchase for a possible pullback to the $143 area. If that happens, make a 2nd scale in purchase there.

But if the pullback to the $143 area does materialize, the upside price target for its next uptrend may need to be adjusted slightly lower. In the meantime, watch for continued reversal signs on its daily chart and MACD Histogram. Tesaro’s uptrend, while strong and fierce, does not appear to be over quite yet.