Biotech is on fire. Tons of small companies with promise are seeing their stock prices go through the roof on good news. It is a tough sector to play though as the losers go down just as fast. So when a mega cap name looks ready to bust a move to the upside it is time to take notice.
Astrazeneca (AZN) makes 54 drugs (if I counted their website correctly) and has a market cap of $59 billion. That is whale size. But the beauty of this whale is in the weekly chart below. It had been in a descending wedge heading lower until breaking above it in mid-July. Since then it moved higher and has now been consolidating that move for nearly two months in a bullish flag.
Astrazeneca (AZN)
A break above the top of that flag at 47.50 carries a Measured Move higher to about 56. The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence indicator (MACD) looks to be starting to increase again after fading for a few weeks. Wait for the break and then ride it higher. Or if you are a gambler the October 50 Strike Calls were offered at only 15 cents late Tuesday.
Disclaimer: 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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