Very Bullish rated and up-trending drug manufacturer, Actavis, threw off an oversold buy signal today. The stock pulled back to an 8 day low, while achieving oversold status on the Chaikin Oscillator, yet maintaining a very bullish rating. Those are the criteria for the signal. The stock is in a strong industry group with g technicals and relative strength.
Support is: $200.63 (the top of the Feb 16th gap)
Stop is: $194.61
Risk is: that short term double top which suggests a price retracement down to around $194. All the major indexes, including Healthcare, are forming a divergent lower high on the oscillator. This is sometimes an early wanring indicator of a market pullback
We're riding the trend while giving the stock some reasonable wiggle room. The stock is in a persistent upward trend, and we're willing to ride the pullbacks as trend traders.
--AA and Mike O
Write something about yourself. No need to be fancy, just an overview.