Bottom Feeding; ALXN Edition

Sometimes being a bottom feeder is an exercise in determination and will. Sometimes it ends in ignominy, as the would-be bottomer proceeds on its trending way down. Sometimes you endure months of going nowhere before the play proves out. And then sometimes the thing does what you want it to do sooner, rather than later.

After a previously successful trade I bought ALXN again in late September on a bull flag, as noted in NFTRH 622’s Stocks of Interest segment. I bought it soon after this note and a chart.

“A bullish looking potential trend changer, former long ALXN in another bull flag.”

Today saw ALXN continue a volume aided move and of course it halted at the neckline to the Inverted H&S. But the volume is good to see and may help out with the conviction needed to break the downtrend and turn the moving average trends up.

alxn

Here’s the weekly chart showing a downtrend channel intact but a trend line broken to the upside. It also shows RSI and MACD in positive territory and not overbought. The pattern (ah those patterns, like a Siren calling the weary chart sailor to the rocks) measures to around 165-170.

We’ll see how it works out, but so far at least I cannot ask for anything better for a start to this position.

alxn

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

Testimonials