Time For Mylan

The Pharma buyout bonanza continued Monday with the Covidien deal Sunday night, and it has many wondering which stock might be the next target. Some have speculated that Mylan, $MYL, could be it. That would be a coup for technical traders as the chart suggests it may be ready to run higher. Take a look.

myl

Since the beginning of March Mylan has been pulling back from the all-time high at 57.50. But the longer term support/resistance zone between 45.50 and 46.50 has given it support, halting the fall 3 times. Each bounce ended at a lower high, creating a descending triangle pattern as price tightened around the S/R zone. That was until Friday last week. On Friday it broke above that descending resistance and continued higher Monday. The target on the break of the triangle is to 61.50. I purposely drew this conservatively. Some would have been interested in a break over the faint blue line a more aggressive take on the triangle. For those that are still skeptical a jump over resistance at 52 will seal the deal with a higher high.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through May 2014 Expiry and sign up here

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
Dragonfly Caps Blog