You Need Drugs for These Markets

• Posted by Greg Harmon
• on September 8th, 2011

And I have them for you. Drug stocks that is. Three pharmaceutical companies ARIAD Pharmacueticals, $ARIA, Jazz Pharmaceuticals, $JAZZ and Questcor Pharmaceuticals, $QCOR, are ready to break out and move higher. Let’s take a look.

ARIAD Pharmacueticals, $ARIA

ARIAD Pharmacueticals, $ARIA, plunged over 45% from July into August. But since then it has tested resistance at 10.153 times, each from a higher low. It is in an ascending triangle pattern with a Relative Strength Index (RSI) that is rising and a Moving Average Convergence Divergence (MACD) that is positive and starting to move higher again. It is can break above the 10.15 resistance then it has resistance higher at 11.25 followed by 11.70 and then 12.70 near the triangle target of 12.80. Wait for a break higher and use the 100 day Simple Moving Average as a stop.

Jazz Pharmaceuticals, $JAZZ

Jazz Pharmaceuticals, $JAZZ, is probing over the 44 resistance area for the third time as well and from a higher low. It has a RSI that is barley trending higher and a MACD that is positive but currently flat. Wait for a close over 44 to enter long and then look for a target on the Measured Move (MM) to 50 and then possibly up to 54 on a rough channel break. I tried this Thursday and was stopped out, but it still looks ready. 42 looks like a solid level for a stop, if it fits your risk parameters.

Questcor Pharmaceuticals, $QCOR

Questcor Pharmaceuticals, $QCOR, has been in a rough descending triangle over a base at 28 since the gap higher in July. The one failed breakdown showed the support at 25.60 below, or maybe that is the base of the descending triangle. Either way it is now test the downtrend support with a MACD that is rising and a RSI that is slowly trending higher. If it can get over 31 then look for a move higher with targets of 35 and 37.40 from the two possible triangles. It has resistance at 32.20 and then 32.78 on the way higher. After the break out place a stop at 30.25.

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