The healthcare sector is beginning to show signs of life, pun intended. The XLV which was the worst performing group of 2016 could be in for a rebound in 2017. Looking back over the last few years one can see that the softest acting groups one year could become big winners the next. For example in 2015 energy was the worst performer with the XLE down 21.5% and in 2016 it was a top performer advancing 19.4%. In 2013, utilities were the dogs losing 13% and in 2014 they were the best behaved higher by 28.6%. In 2011 it was the financials who stunk up the joint and were the worst performers down 17.2% and in 2012 they were the leading sector advancing 28.5%. Of course historical data means little and one should follow PRICE action alone. Lets look below at some candidates that could be ready to jump should the group continue to see some love. All the charts are exactly how they were examined on the date they were in the daily report.
In our Tuesday 1/31 Game Plan we looked at FPRX. The stock is now looking for its first back to back weekly gains since November higher by 2.3% headed into Friday. It recorded a bullish engulfing candle on 1/31 and now should have room to at least the 200 day SMA near 48. It recorded a bullish MACD crossover Wednesday as well.
Stocks that can be bought as they pullback into bullish hammers are FPRX. FPRX is a healthcare play down 12% YTD and higher by 23% over last one year period. Earnings have been mostly higher with gains of 4.1, 1.6 and 8.5% on 11/4, 8/5 and 3/11 and a drop of 3.7% on 5/6. The stock is lower 6 of the last 9 weeks after recording a bearish evening star pattern completed on 11/28 at all time highs and has the stock off 29%. FPRX did record bullish hammer candles 3 sessions in a row 1/23-25. Enter on pullback toward move at 43.30. The session on 1/23 also recorded a bullish counterattack candle.