Stochastics Signal a Buy for TEVA
by Sam Collins 02/04/08
Teva Pharmaceutical Industries (TEVA) -- This global healthcare company specializing in pharmaceuticals has been in a bull market since 1999. On Nov. 13 the Trade of the Day said, "The long-term chart on TEVA shows that it could break from a big double top with a new price objective of over $60."
And on Jan. 9, "The pharmaceutical group is generally considered defensive (advancing while other groups decline), and TEVA illustrated that this month by breaking out on a high-volume break-away-gap -- a very bullish signal. The target of $60-plus is still viable."
Following the breakout, TEVA consolidated just above the 200-day moving average and recently issued a stochastic buy signal. The target remains at over $60.
by Sam Collins 02/04/08
And on Jan. 9, "The pharmaceutical group is generally considered defensive (advancing while other groups decline), and TEVA illustrated that this month by breaking out on a high-volume break-away-gap -- a very bullish signal. The target of $60-plus is still viable."
Following the breakout, TEVA consolidated just above the 200-day moving average and recently issued a stochastic buy signal. The target remains at over $60.
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
