Big Pharma Already Knows the Supreme Court Outcome
- Posted by Greg Harmon
- on June 19th, 2012
Recently the decision to buy stocks in the healthcare sector has centered on the small cap bio-pharma companies. With these the technicals play a big role along with the FDA Approval calendar. The whole sector has gained attention of traders. Many of those names are starting to show signs of exhaustion after long runs. But the large cap healthcare stock, names that everyone has in their medicine cabinet are on the verge or break outs on the longer term weekly charts. Do they already know how the Supreme Court ruling will affect them? Take a look at these four behemoths, all over $47 billion in market cap and with at least a 3.90% dividend yield.
Bristol-Myers Squibb, $BMY
Bristol-Myers Squibb, $BMY, is making a third touch at the top rail of an ascending triangle with a strong candle. The Relative Strength Index (RSI) is bullish and rising and the Moving Average Convergence Divergence (MACD) indicator has just crossed positive, both supporting a punch through resistance. The target on a pattern break higher is to 38.10.
Eli Lilly, $LLY
Eli Lilly, $LLY, is testing an expanding wedge higher, after moving over 41 resistance. Many think of this megaphone as a topping pattern but a continuation is possible as well. The target on the continued move higher is to 44.50 and it also has support from the RSI and MACD.
Merck, $MRK, may be the best looking one of the bunch. Breaking a 6 month consolidation higher it has a target of 47 with support from the technicals.
Pfizer, $PFE, is breaking a short term resistance at 22.90 but still has a rising wedge resistance higher at 23.30. If it can get over that the target is up to 27.60. The RSI supports more upside while the MACD is not quite on board yet, but heading to a positive cross.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- VMWare shows real and relative strength
- Premium Earnings 8-3-15
- Top Trade Ideas for the Week August 3, 2015: Bonus Idea
- Top Trade Ideas for the Week of August 3, 2015: The Rest
- Top Trade Ideas for the Week of August 3, 2015: The Rest Premium
- Top Trade Ideas for the Week of August 3, 2015: The Best
- SPY Trends and Influencers August 1, 2015
- Macro Week in Review/Preview July 31, 2015
- How This Week’s Premium Top 10 Performed
- Premium Earnings 7-31-15