Healthcare Highlights From Thursday 5/14 Game Plan

Healthcare Highlights From Thursday 5/14 Game Plan

Healthcare Highlights From Thursday 5/14 Game Plan

Each week at ChartSmarter we like to bring to a little insight into what we do on a daily basis. We have been at it for 5 years and we love doing it. Each night we detail 7 to 8 of our favorite ideas, both long and short, for the next days session. We do NOT have a chat room, nor are we active “tweeters”. We like our business growing by word of mouth. For those who would like to see a full copy of our Monday Game Plan, email me at [email protected].

All 4 of these names were examined in our Thursday 5/14 Game Plan one month ago. BIIB we still fell has a lot to say about where the overall biotech group is headed. CELG is dangling onto life support at its 200 day SMA as well. It came very close to the posted stop but was never hit on an intraday or more importantly CLOSING basis.

Stocks to be viewed as shorting opportunities are BIIB. BIIB is a best of breed biotech play higher by 15% YTD and 36% over the last one year period. It has ran into some stiff headwinds and now sits near bear market mode down 19% from recent all time highs. The stock is down 5 of the last 7 weeks with poor volume trends as the 2 up weeks came in frail trade. Since losing its 50 day SMA in heavy trade after its last earnings report which also was the first day of a bearish three black crows pattern it is down 10 of the last 14 sessions. Prior reports rose 10.2 and 11.2% on 1/30 and 7/23 and fell 5.4% on 10/22. Today it broke below a bearish rising wedge pattern with the round 400 number acting as resistance. Short into breakdown of pattern at 396.

Trigger BIIB 396.  Buy stop 404.55.

MYL is of course dealing with merger activity and is now comfortably above its falling wedge which aligned with the round 70 number.

MYL is a best in breed pharma play that is higher by 26% YTD and 54% over the last one year period. The name has been in speculative talks with PRGO and it has been under heavy accumulation recently with the weeks ending 4/10 and 4/24 up by 20.9 and 8.9% on 4/10 and 4/24. Both weeks were accompanied by more than double average weekly trade. Earnings have been anything but spectacular with losses of 2.5, 4.2 and 3% on 5/6, 3/3 and 8/7. It gained 2.2% on 10/31. MYL did take out a 59.70 cup base pivot on 3/12 in huge trade and has now formed a bullish falling wedge pattern. It can be bought with a buy stop above 72 or just above the round 70 handle at 70.25.

Trigger MYL 70.25.  Stop 69.20.

FOLD recorded a wonderful day Friday up almost 8%. It is now on a 6 day winning streak with substantial volume behind the impressive run. The break above the 50 day SMA was taken out on 5/18 and the double bottom trigger of 12.71 on 6/8.

Stocks that can be bought as they take out their 50 day SMAs and then added to through future valid base structure triggers are FOLD. FOLD is a pharma play that is higher by 26% YTD and 380% over the last one year period (one year ago it traded below $2). The stock has taken out a couple of trigger in the last 6 months with the first being a double bottom pivot of 7.18 on 11/24 and the a cup base trigger of 9.73 on 3/19. That session rocketed higher by more than 33% as well. Earnings have been mixed as it rose 3.1 and 3% on 5/6 and 8/8 and fell .8 and 2.7% on 3/4 and 11/7. The stock is just below its 50 day SMA and lets look to enter with a buy stop above that line at 10.85 and add to through a double bottom trigger of 12.71.

Trigger FOLD 10.85.  Stop 10.20.

To be balanced one of the names did get hurt on Friday 6/12. It did CLOSE above its 50 day SMA and will be interesting to see how it trades from here.

Double bottom trigger AGIO 113.77.  Stop 106.50.

If you liked what you read why not take a 2 week FREE trial at www.chartsmarter.com.

Be Sociable, Share!




















Source article:  

Healthcare Highlights From Thursday 5/14 Game Plan

See which stocks are being affected by Social Media

Share this post