TEVA Pharmaceuticals – Potential Swing Trade “The new generic [Epi-Pen} should help protect against shortages and offer a lower-cost option.” – FDA
TEVA Pharmaceuticals is back on our radar. News of the FDA approval of its generic Epi-Pen crossed the tape yesterday, with the stock closing higher in late trading.
TEVA Technicals
Price action has cleared all of its moving averages, after breaking out of a cup and handle pattern in early June. MACD briefly dipped below the zeroline over the past few weeks as the stock formed an elongated consolidation.
RSI pierced the 50 zone. Volume surged 192% above average.
Warren Buffett’s Latest Shopping List: More Investments in Goldman, Apple, Teva, Southwest, and Delta
IV Rank closed at 26.57%, presenting a bullish options trade as an alternative to common. We intend to do the latter and sell covered calls shortly thereafter once IV Rank climbs a bit higher (50% +/-).
Depth of the cup is approximately 6-7 points, so first targets are near 28.64.
TEVA – The FDA Approval Provides Additional Sales
Teva Pharmaceuticals received Food and Drug Administration approval for generic versions of both the EpiPen and EpiPen Jr. News hit the tape at 1:45 PM Thursday.
“The products are the first competitors cleared by the FDA that are direct generic copies of the EpiPen and could be substituted for the brand-name product by a pharmacist. Other versions of epinephrine auto-injectors, such as the Adrenaclick and Auvi-Q, are on the market, but aren’t considered EpiPen generics.” – Source CNBC
We started a position yesterday, shortly after the news. We’ll consider addiing in the short-term, as we analyze price action and institutional interest.
Teva recent upgrades.
Join us for our LIVESTREAM broadcast during market hours. Watch, listen and trade with a group of like minded traders and investors as we feret out the next winning stock trades.
Happy Trading,
Vinny
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.