* Exceptional earnings * Very strong up trend * High 3-month relative strength in the Healthcare sector * Offering a pocket pivot entry with little to no resistance * Forming a text-book cup and handle pattern with a ~11% deep base * Base forming for the past ~10 weeks with a tight handle of ~3 weeks
Trade Idea: * Now's a great time to enter on the pocket pivot signal and it's just before the breakout * Offering a great risk/reward ratio * If you're looking for a slight discount you can look for an entry near the $353.94 area * This would be its second attempt at breaking out.
Notes: * The general Healthcare sector has been in a very tight consolidation for the past several weeks. * This seems to be a leader in the sector breaking out before its peers.
Caution: * This is a pocket pivot signal and though there's little to no overhead resistance, the stock might not breakout immediately. * A daily close below $353.94 would negate this idea * Since there is some buffer room in the stop, we may be able to wait for two consecutive days closing below $353.94 before exiting.