There's Nothing Generic About Teva's Rally
The stock has been in an impressive uptrend over the past 12 months. Now, let's let the charts determine our trading strategy from here.
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Shares of Teva Pharmaceutical Industries Ltd. TEVA made a base pattern on the charts and exploded to the upside.
Let's check out the charts and indicators of this maker of generic pharmaceuticals to see if more stock price gains lie ahead.
In the daily bar chart of TEVA, below, I can see an impressive uptrend over the past 12 months. Prices are trading firmly above the rising 50-day moving average line and above the rising 200-day moving average line.
The trading volume shows more activity since January. The On-Balance-Volume (OBV) line shows us a steady rise the past year as buyers of TEVA have been more aggressive than sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but correcting in recent days. The oscillator is now narrowing and that could lead to a fresh outright buy signal.
In the weekly Japanese candlestick chart of TEVA, below, I can see that the shares made at least a two-year base formation before the upside breakout and rally of 2024. Prices trade above the rising 40-week moving average line.
The weekly OBV line has been mostly positive the past three years. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of TEVA, below, I can see the base pattern note above and the upside breakout and rally. The software suggests a price target in the $35 area is possible.
In this weekly Point and Figure chart of TEVA, below, I can see the same $35 price target as shown on the daily chart above.
Bottom-line strategy: TEVA looks capable of further gains. Weakness in the broader market averages could generate some sideways price action in TEVA. Let's wait and see how this anticipated sideways action develops before jumping in with purchases.
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