The health sector was by far the most constructive segment up until last summer.
However, it strongly broke down in August, and had a hard time recovering, as seen on the XLV chart.
The lows of October 2015 and February 2016 appeared to coincide with meaningful reversals and ‘washout’ bottoms.
We have selected 3 stocks in the health sector which deserve the attention of investors.
First, Horizon Pharma, a $2.3B market cap drug company with a $0.08 EPS and future earnings of $2.64 is attempting to break out after a meaningful correction. The stock managed to stay above the $13 support area. Watch $16.50 for a confirmed breakout.
Second, Advaxis, a small cap with a $279M market cap, has a similar setup as Horizon Pharma. We are not very pleased with the low trading volume. If the stock would break out, we want to see more interest as a healthy sign for investors to get on board.
Last, Theratechnologies, a small cap biotech company based in Canada, is continuing a huge rally which started in March of this year. As the stock is trying to break through all-time highs, it is trending outside its consolidation pattern, signaling it is an attractive buy candidate.
As always, do your own due diligence before engaging in any position.
This article is brought to you courtesy of Taki Tsaklanos.