NTLA update and a look at GDS

Fred asks us for an update on NTLA and a chart on GDS

Intellia Therapeutics (NTLA): H&S bottom breakout hits lower end of target zone

NTLA broke out from the absolute and relative price head and shoulders (H&S) bottom patterns highlighted in our September 17th "Straight from the Chart" blog post.

The rally above 12.84 and 14.61 confirmed the absolute price H&S bottom to suggest upside potential to 20.00 (achieved) and 23.10. These levels align with the 50% and 61.8% retracements of the March 2024-April 2025 decline at 20.39 (achieved) and 23.80, respectively. If trading the H&S bottom breakout, NTLA has entered a tactical take/protect profit and/or manage long position zone.

Chart 1: Intellia Therapeutics (NTLA) (top) and relative to the S&P 500 (bottom)

GDS Holdings (GDS): Tactical breakout and big base

GDS shows a big base in the form of a 2022-2025rounded bottoming pattern and a tactical bullish breakout.

While above 39-38, the breakout from a February-September bullish consolidation remains intact with upside potential to 60.88 (50% retracement of the February 2021-February 2024 decline) and 63.00 (bullish consolidation pattern count). Given the larger rounded bottom big base pattern, we would not rule out testing the 61.8% retracement at 74 longer-term. The spike high from February at 52.50 offers an initial resistance ahead of these upside projections.

Rising 13-, 26-, and 40-week moving averages from 36.03 to 31.11-30.57 confirm the bullish backdrop for GDS.

Chart 2: GDS Holdings (GDS) (top) and relative to the S&P 500 (bottom)