What Do Willow Trees Have to Do with Pharmaceuticals
- Posted by Greg Harmon
- on May 8th, 2012
One stock I have been watching makes trading easier, Salix Pharmaceuticals, $SLXP. This stock has been in a rising trend since breaking higher in November, as seen on the chart below, like a tall Weeping Willow growing. The Relative Strength Index (RSI) is bullish and rising and the Moving
Average Convergence Divergence (MACD) indicator is improving. And after reporting earnings on Monday after the close the it lea[t higher. A closer look at the daily chart shows how cleanly the stock broke the 4 week consolidation higher, on strong volume, with a bullish RSI and a MACD that is positive and increasing. What more could you want in a stock? How about this, a small island reversal higher. If it can get over 54 there is nothing to stop it from growing into a stately shade tree. Oh yeah the connection. Willow trees have been mentioned in ancient texts from Assyria, Sumer and Egypt as a remedy for aches and fevers. Perhaps that is why they named their company Salix, the genus of these trees.
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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.
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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)

