Mylan (MYL) has made a base pattern over the past four months. Prices have tested the $40 area a number of times and it looks like the next upside attempt should do the trick. Let's take a closer look at the charts and indicators.
In this twelve-month daily chart of MYL, below, we can see that prices have rallied above the 50-day moving average line, and the slope of the line has just turned positive. The 200-day moving average line is still declining, but it is within striking distance above the market. Over the past four months dips and declines into the $36 to $34 area have been bought.
The On-Balance-Volume (OBV) line is showing the early stages of accumulation and more aggressive buying. Into the lows seen in November and December, the momentum study made higher lows -- marking a bullish divergence.
In this three-year weekly chart of MYL, above, we can see that prices are just below the declining, 40-week moving average line. The weekly OBV line has been rising since October, and looks like it is leading prices. The trend-following Moving Average Convergence Divergence (MACD) oscillator signaled a cover-shorts buy signal in November, and is moving up towards the zero line -- and perhaps an eventual outright go-long signal.
In this Point and Figure chart of MYL, above, we can see four attempts to break the $40 level. A trade at $41 will be bullish.
Bottom line: Go long MYL here and on a close above $40. Risk a close below $37, and $47 is our initial upside price objective.