The healthcare sector has had its shares of ups and downs since the November election. Looking at the overall group through the lens of the XLV one can see the ETF is just 3% off most recent 52 week highs. It is higher 2 of the last 4 weeks and the last 3 weeks have all CLOSED very tautly within just .12 of each other. Perhaps a bit worrisome was the funds inability to finish above a 76.10 weekly the week ending 3/17 that began the week of 8/5/16. Examining a specific name RGEN, directly below is how it was presented in our Wednesday 3/15 Game Plan and finally give our view on the present situation.
RGEN is a healthcare name higher by 7% YTD and 21% over the last one year period. Earnings have been mixed with gains of 6 and .8% on 2/22 and 5/5 and losses of 5.7 and 1% on 11/3 and 8/4. The stock is higher 5 of the last 6 weeks and this week showing good relative strength thus far higher by 2.4%. It has found good support at its rising 200 day SMA since reclaiming it last June and the 34 number has proved difficult to get above (the weeks ending 9/23, 11/25-12/2 and 12/16/16 were all stopped there. Look to enter RGEN here as it took out a bullish inverse head and shoulders trigger of 32.75 today. Add to above a 34.25 ascending triangle and then finally through a long weekly cup base trigger of 42.58 that began the week ending 7/3/15.