Time For Mylan
- Posted by Greg Harmon
- on June 16th, 2014
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.
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.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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