ALXN HITTING BIG SUPPORT. POTENTIAL FOR LONG POSITIONALXN Alexion Pharmaceuticals with a very strong fundamental background is reaching a big level of support.
It could offer a big upside once if it rebounds on that support. Keep an eye on this one.
Alxnlong
ALXN - Monthly chart storyNote : Pharma cos can remain bearish/ bullish for extended time frames as a lot of the movement is based on future expectations and trials.
NASDAQ:ALXN has been in the descending triangle and has nicely tested support levels as indicated in the chart. Lovely similar formations on RSI and OBV, both confirming the downward trends
Descending triangles are bearish formations and if you look at the charts closely, most of the monthly, actually nearly all the monthly closes are below the 50 Day (to be read in this case as 50 period) moving average, again no respite as bearish.
The strategy here could be as follows
1. Ideal way would be to wait for breakout and sell when the support is breached
2. In case you want to Sell, then do as at the top of the triangle once it is rejected at the resistance level....
3. In case you had conviction on this pharma company, then Buy near supports when it bounces and retests the support zone and back in the triangle (this can be very dangerous as the formation is bearish)
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Cheers
ALXN approaching resistance, potential drop! ALXN is approaching resistance at 137.60 where we might see a drop to our first support at 128.06. Stochastic is also approaching resistance where we might see a corresponding drop in price.
ALXN is approching resistance, potential drop! ALXN is approaching our first resistance at 137.60 (horizontal swing high resistance, 61.8% fibonacci extension, 78.6% fiboancci retracement) where a strong drop might occcur to our support level at 128.06 (horizontal pullback support, 50% fiboancci retracement).
Stochastic (55,5,3) is also approaching resistance where we migth see a corresponding drop in price.
ALXN approaching resistance, potential drop! ALXN is approaching our first resistance at 137.60 (horizontal overlap high resistance, 61.8% fiboancci extension, 78.6% fiboancci retracement) where a strong drop might occur below this level pushing price down to our major support at 128.06 (50% fibonacci retracement).
Stocahstic (55,5,3) is also approaching resistance where we might see a corresponding drop in price.
