Drugs And Their Dealers
It would seem logical that the biotech and drug sectors should move at least
a little bit in tandem, but this is not the case. While the biotechs have been
volatile, moving up and down repeatedly and recently testing their lows…
… the drugs have been trending in a channel.
We will add a member of this group to
the watch list today, Alexion Pharmaceuticals
(
ALXN |
Quote |
Chart |
News |
PowerRating). ALXN broke its
support level on Monday when it gapped lower. On Wednesday it tried to quickly
retake this key level, but support had already become resistance.
This type of activity is rarely
positive. At this point we will monitor ALXN for more downside activity. If
there is a continued weakness, watch for a move below Tuesday’s intraday low to
offer a short opportunity. The next support area is near 80. Note that the gap
area has also been filled since Monday.Â
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Until later,