Two bellwether stocks in the healthcare segment are showing great chart patterns, with major breakouts unfolding.
First, Gilead Sciences, a $138B market cap biotech company, is breaking through a downsloping trendline which connects the highs since last July.
Do not underestimate the importance of this breakout. Note on the chart how there has been follow through already, so this breakout is for real, it’s not a false breakout.
Second, Bristol Myers, a drug manufacturer with a market cap of $117B, is breaking out to all-time highs.
Moreover, the stock price is clearly breaking through a consolidation area which is going on for more than a year now.
The same observation as the one for Gilead Sciences applies here as well: this ‘event’ has a high importance because of the long consolidation period which came with several tests of the highs.
The underperforming healthcare sector is showing strength again, as evidenced by the breakouts in two leading stocks in that segment.
This bodes well for the other healthcare companies, and it could even drive the broad market higher.
This article is brought to you courtesy of Taki Tsaklanos.