When a multibillion-dollar company starts to change trend... I take notice. You should, too...
Big Biotech Flashes a 'Bullish' Setup
By Pete Carmasino, chief market strategist, Chaikin Analytics
When a multibillion-dollar company starts to change trend... I take notice.
You should, too...
This company's market cap is roughly $31 billion today. It does more than $10 billion in sales each year.
It's in a life-changing business as well. It makes a handful of drugs that treat neurological diseases. And more than half its revenue comes from drugs that treat multiple sclerosis.
But like most of the market, this stock has been punished. It's down nearly 50% since it briefly surged to more than $400 per share in June 2021. It's at about $214 per share today.
That's a major drop.
However, in this essay, I'll show you why this stock is worth watching right now...
On August 29, a historic unveiling in Houston, Texas could reshape the stock market and create a wave of millionaires on a single investment. Learn more here (includes free stock ticker).
Wealthy 73-year-old U.S. entrepreneur retreats to one of his three European properties to issue serious warning (and four recommendations) for Americans. "It falls on someone like me to warn you clearly. I'm too rich to care about money—and too old to care what anyone thinks." Click here for details.
The company I'm talking about is global biotech giant Biogen (BIIB).
Let's start with the Power Gauge's current breakdown of Biogen. The four main factor categories tell a story here...
A "very bullish" outlook in Financials and a "bullish" grade in the Experts category help to shape the overall "bullish" narrative. But to me, the rating is the icing on the cake.
In this case, the real "tell" is the technical change on the relative strength indicator...
Right now, our relative strength indicator is changing trend to the upside. That means Biogen is now outperforming the SPDR S&P 500 Fund (SPY). Take a look...
This chart is one of the best setups the market can deliver...
You can see that Biogen's stock has slowly grinded lower for the past 12 months. And now, the setup we're seeing here is something that typically happens before a big move higher.
Let me show you what I mean with another example...
Recently, the renewable-energy sector experienced a trend change. That led me to the Invesco Solar Fund (TAN), which was setting up with the same pattern. Take a look...
Look at the period between May and June on the chart...
Notice that the relative strength indicator started to turn green. The Power Gauge also flipped to "bullish" at the time. And the share price was very stable in a declining market.
That means it was building up "buying" pressure. This opportunity had all the makings of a breakout...
1. The relative strength indicator turned positive
2. The stock's Power Gauge rating flipped to "bullish"
3. The industry is front and center again due to the world's energy issues
As I've said in the past, technical indicators tell you "when"... And the "why" will show up later.
Over the past seven weeks, TAN is up roughly 24%. That's an annualized return of more than 200%.
Inexperienced investors might not have given TAN a second look. But market pros are constantly searching for these types of clues. And so should you...
It's essential to understand that relative strength is the key to bigger gains.
Relative strength sometimes starts slow, like it did in TAN's case. But it can quickly become a powerful indicator. It can be an early signal to something important for investors.
That's what we're seeing with Biogen today...
The stock is setting up with this exact same relative strength pattern.
The weight of the evidence is on your side. Add this opportunity to your watch list today.
Good investing,
Pete Carmasino
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+1.27%
5
20
5
S&P 500
+1.52%
114
280
105
Nasdaq
+2.72%
38
43
19
Small Caps
+1.42%
481
974
386
Bonds
+1.57%
Information Technology
+2.69%
34
35
7
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed.
Over the past 6 months, the Oil & Gas Exploration & Production subsector (XOP) has outperformed the S&P 500 by +31.24%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #3 of 21 subsectors and has moved down 2 slots over the past week.
Top Stocks
PBF
PBF Energy Inc.
REX
REX American Resourc
DINO
HF Sinclair Corporat
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at diansastroxz.forex@blogger.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
Post a Comment
Post a Comment