Everyone still loves biotechs; however, every once in a while, a chart comes along that makes you say, "Meh." Endo Pharmaceuticals (ENDP) would be that chart at the moment.
Back in late 2013, ENDP was trading in the $40s, so I won't argue it hasn't been a big winner, and looking short or lower on anything of strength hasn't been a very profitable strategy in the long term. But the short term can be a very different strategy.
Above $96 and everyone will want to be long this stock. Heck, above $88.50 and I think you'll find momentum investors piling back in, but we aren't above $96 let alone $88.50. Instead, we are dangling just above pretty big support here at $84. Under this level and ENDP looks headed into the upper $70s, or to $80 at the very least. I wouldn't call this one a head-and-shoulders here, but I would note this is more of a bearish flag after the drop from previous highs. Again, I am focused on the very short-term picture here.
Some may want to argue there are higher lows in the RSI making it a bullish divergence, but I would counter the RSI is more of a wedge pattern right now, which ties in well with the consolidation notation of the bearish flag pattern. I only care on the RSI if it goes back over 50 or heads under 30, then rebounds back above it. Until one of those two things happens, it is bearish.
Furthermore, we have a bearish kiss on the vortex indicator where the red has come back down to meet the green and is now headed higher. Again, signs of a bearish consolidation. We saw the slow stochastics rise from oversold, even with price doing little, and fail at the midline, after which it made another bearish cross. Lastly, toss up the 20-day moving average (black line behind the price) crossing below the 50-day moving average (red line) and we have another bearish indicator. This cross hasn't occurred since last October. If we don't see a quick reversal on that or any of these other bearish influential factors, then I expect ENDP to be a biotech underperformer over the next few weeks and a possible short play on a close under $84.