The healthcare group as a whole may be beginning to lose some of its steam as one of the best performing sectors, but below are a few names that held up nicely in the face of a tough week. That could be an important tell going forward. Others acting well this week were INCY which rose 15% this week in well more than double active weekly volume. MDCO rose 9% this week in very active trade and bounced nicely off 200 day SMA support for a third consecutive weekly gain. Pay attention to names that hold up well in a rough environment. They could very well be trying to tell you something.
In our Thursday 8/20 Game Plan we looked at BLUE. The stock did rise 4 consecutive sessions to end the week, although each successive day came in weaker trade. We think this name has room to move to its 50 day SMA just above the 150 level and should find trouble getting above it as it was stopped there in both July and August. BLUE found nice support at the 200 day SMA and is higher by almost 13 handles from the recommended trigger. Below is precisely how we looked at the name in our 8/20 Game Plan.
Stocks that can be bought after bullish hammers are BLUE. BLUE is a healthcare play up 38% YTD and 249% over the last one year period. Its last 3 earnings reports can all be construed as bullish with gains of 2.7 and 9.2% on 11/12 and 5/7 and on 8/7 it fell 1.3% but reversed 25 handles off intraday lows. The stock has put up some massive weekly gains with the one ending 12/12 up more than 100% hands down the best. BLUE is lower by 35% off all time highs made near the round 200 number in late May and is lower 9 of the last 11 weeks, many in firm volume. Wednesday it recorded a bullish hammer and enter on a pullback into the candle at 125.