As the benchmarks strengthen smart investors will look to see where leadership is coming from and what sectors are starting to show signs that big gains can be in the near future. Transports come to mind, specifically the rails and truckers, but another group has been acting lively, pun intended, that being the healthcare names. We have heard plenty of noise with how they could come under pressure with the November election looming, and that may prove true but as technicians we care simply and only about PRICE action. Below are some names that we recently profiled that should be put on your watchlist. Below is how they were examined precisely in our daily report. Anyone who would like a full copy of Mondays Game Plan, just email me ay firstname.lastname@example.org.
In our Tuesday 7/5 Game Plan we looked at FPRX. We highlighted the importance of NOT taking a name off a buy watch list if its is rejected at its 50 day SMA as it was on 7/1. On second attempts the move can be successful and that is just what happened on 7/6. The stock is up more than a combined 13% the last 2 weeks and one can now put on the watchlist through a double bottom trigger of 47.84.
Stocks that can be bought as they take out their 50 day SMAs and added to through future valid base triggers are FPRX DFS. FPRX is a healthcare name up 1% YTD and up 71% over last one year period. Earnings have been decent with gains of 14.5 and 1.9% on 3/1 and 11/13, and UNCH finish on 5/10 and a loss of 2.6% on 8/11. The stock recorded a bullish engulfing week this week rising 6.9%. Notice on the weekly chart some big moves making this name a leader in its space. First was a weekly 104.5% gain ending 10/16/15 and more recently it recorded a 6 week winning streak up 41% between weeks ending 3/18-4/22. FPRX did take out a 45.82 cup base trigger on 4/13 which was stopped at the 50 number not long after on 4/22. Today it was halted at 50 day SMA and enter with buy stop above line at 43 and add to through a double bottom trigger 47.84.