Note : Pharma cos can remain bearish/ bullish for extended time frames as a lot of the movement is based on future expectations and trials.
NASDAQ:ALXN has been in the descending triangle and has nicely tested support levels as indicated in the chart. Lovely similar formations on RSI and OBV, both confirming the downward trends
Descending triangles are bearish formations and if you look at the charts closely, most of the monthly, actually nearly all the monthly closes are below the 50 Day (to be read in this case as 50 period) moving average, again no respite as bearish.
The strategy here could be as follows
1. Ideal way would be to wait for breakout and sell when the support is breached
2. In case you want to Sell, then do as at the top of the triangle once it is rejected at the resistance level....
3. In case you had conviction on this pharma company, then Buy near supports when it bounces and retests the support zone and back in the triangle (this can be very dangerous as the formation is bearish)
If you like what you see, please share a thumbs up and your views in the comment section
Cheers
NASDAQ:ALXN has been in the descending triangle and has nicely tested support levels as indicated in the chart. Lovely similar formations on RSI and OBV, both confirming the downward trends
Descending triangles are bearish formations and if you look at the charts closely, most of the monthly, actually nearly all the monthly closes are below the 50 Day (to be read in this case as 50 period) moving average, again no respite as bearish.
The strategy here could be as follows
1. Ideal way would be to wait for breakout and sell when the support is breached
2. In case you want to Sell, then do as at the top of the triangle once it is rejected at the resistance level....
3. In case you had conviction on this pharma company, then Buy near supports when it bounces and retests the support zone and back in the triangle (this can be very dangerous as the formation is bearish)
If you like what you see, please share a thumbs up and your views in the comment section
Cheers