[Premium] Trade Of The Week

July 26, 2020

We continue to focus on stocks that are showing relative strength and absolute price momentum. This week we're looking sticking with a sector that continues to work, Pharma.

Here we're looking for continuation in a stock that's confirmed a bearish to bullish trend reversal and has now pulled back down towards support, offering an attractive entry on the long side. Downside momentum in the stock has stalled as prices filled the gap and retested support near 405.

Click on chart to enlarge view.

Given the long-term trend is higher and momentum is firmly in a bullish regime, we think this pullback offers an attractive entry on the long side. As long as prices are above 405, we can be long with a target back up towards 502 and eventually the 2018 highs near 700.

And for all of the stocks we want to be buying and selling, make sure to review our Trade Ideas page.

Also, make sure to check out our "Three Charts For The Week Ahead" and our weekend post on Reliance as well.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team