Two Long Setups in the Pharma Sector

Technical coordination on a weekly and daily time frame and clear support and resistance make a good trading combination. The charts of two pharmaceutical companies display both characteristics and set up long trades.

Actavis (ACT), formerly Watson Pharmaceutical, develops and manufactures branded, over-the-counter pharmaceutical products. The stock has been consolidating since the beginning of the year in a horizontal channel. Stochastics have made a bullish crossover and are above the centerline, the relative strength indicator has held above its centerline for over a year, and the moving-average convergence/divergence histogram is moving off its lows. Overall volume improved during the consolidation, and Chaikin money flow, a three- and 10-day measure, is attempting to cross above its 21-period signal average....307 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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