Stock of the day: Teva Pharmaceutical

On the last day of the week, we’re analysing for the first time Teva Pharmaceuticals, the Israeli big-pharma company that’s listed on the NYSE.

The second half of March was great for TEVA; after establishing new long-term lows, the stock performed a quite spectacular reversal, which managed to break the down trendline (red) and the horizontal resistance at 9.3 USD (orange). In slightly less than a month, TEVA returned to levels last seen in the first half of June in 2021. Go Bulls!

Over the last few days, we saw a bearish correction, which is currently testing a very important horizontal support. This support is 38,2% Fibonacci, which goes in line with the 9.3 USD resistance from January and February. It seems to be a good place to end the correction and return to the newly formed bullish trend. Any bounce from this area should be considered as a nice buy signal.

On the other hand, if it breaks out and returns below 9.3 USD, it can be taken as a strong sell signal. The first scenario is still slightly more popular.