Is Teva Pharma Saying Good-Bye to Double Digits?
As we enter December, it can be useful to look back at some of the companies that struggled the most in 2020. They may offer downside opportunities into yearend.
One of the biggest examples might be debt-laden Teva Pharmaceutical Industries.
TEVA was struggling long before coronavirus, having steadily declined since late 2015. It had a big bounce between October 2019 and February 2020, doubling from long-term lows. It tanked again in March before rebounding back toward $12.
That’s when sellers appeared to take control again. TEVA made slightly lower highs versus its pre-crash peak. It chopped in a range over the summer before knifing downward in mid-August.
The stock tried to get back into the double digits on October 9, but slammed into resistance at its 50-day simple moving average (SMA). It bounced again in early November but is stalling again slightly below $10.
Three other indicators may suggest a move lower is coming soon. First, stochastics were overbought on the last bounce. Second, Bollinger Band Width has tightened to its narrowest levels since early November. Third, MACD is on the verge of turning negative.
Finally, TEVA has surprisingly little short interest given its troubled balance sheet, bearish technicals and knack for guiding lower. How long before the bears start to smell blood?
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One of the biggest examples might be debt-laden Teva Pharmaceutical Industries.
TEVA was struggling long before coronavirus, having steadily declined since late 2015. It had a big bounce between October 2019 and February 2020, doubling from long-term lows. It tanked again in March before rebounding back toward $12.
That’s when sellers appeared to take control again. TEVA made slightly lower highs versus its pre-crash peak. It chopped in a range over the summer before knifing downward in mid-August.
The stock tried to get back into the double digits on October 9, but slammed into resistance at its 50-day simple moving average (SMA). It bounced again in early November but is stalling again slightly below $10.
Three other indicators may suggest a move lower is coming soon. First, stochastics were overbought on the last bounce. Second, Bollinger Band Width has tightened to its narrowest levels since early November. Third, MACD is on the verge of turning negative.
Finally, TEVA has surprisingly little short interest given its troubled balance sheet, bearish technicals and knack for guiding lower. How long before the bears start to smell blood?
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.