• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Healthcare

Mylan Is Poised to Break Sideways Trend

Things are looking bullish.
By BRUCE KAMICH
Jul 19, 2016 | 02:32 PM EDT
Stocks quotes in this article: MYL

Mylan (MYL) has traded sideways since September with lows around $40 holding in February and May, but with lower highs at $55, then $54, $50 and recently $47. On the face of that, it sounds like a weakening pattern, but let's look closer. 

 In this daily chart of MYL, above, we can see prices are above the 50-day moving average line and recently tested the underside of the 200-day average. The movement of the On-Balance-Volume (OBV) line tells a compelling bullish story. The OBV line bottomed in August through October. There is a strong improvement in the OBV line in November and December followed by a sideways trend. The OBV goes sideways even while prices for MYL decline. Then the OBV line turned up again in May and June and hit new highs this month. The price action may not be the strongest, but the OBV line is foreshadowing an upside breakout with the aggressive buying that has been going on since early May. 

In this weekly chart of MYL, above, we can see prices are poised to test the 40-week moving average line and maybe close above it. The OBV line has been constructive in recent weeks, indicating more bulls. There is a bullish divergence between the equal lows around $40 on MYL in October and now, but much higher lows from the momentum indicator. A close over $47 on MYL should get the bull going for a potential rally to $55, the December high.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Healthcare

More from Healthcare

Cooper Cos. Can Rally Further After Some Sideways Consolidation

Bruce Kamich
Dec 5, 2019 2:42 PM EST

Time to review the charts and indicators.

This Dividend Stock Is Tipping the Scales for Investors

Chris Versace
Dec 5, 2019 2:08 PM EST

As more Americans struggle with obesity, Medifast sees strength in weight-loss offerings.

Avita Medical Could Double in 2020 but Not Without Risk

Bruce Kamich
Dec 5, 2019 9:53 AM EST

A 'promising' stock.

Raise Stops on NovoCure

Bruce Kamich
Dec 4, 2019 2:55 PM EST

NVCR's prices are poised to head higher in the months ahead.

UNH Passes Checkup, but Not With Flying Colors

Timothy Collins
Dec 3, 2019 1:42 PM EST

Despite fluff and puff of UNH's analysts' day, little here screams for getting in right now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:02 AM EST BOB LANG

    Added Some Peleton

    This stock is starting to gain some traction, the ...
  • 01:06 PM EST CAROLYN BORODEN

    MRK and LVS Targets Coming Up

    View Chart » View in New Window »  LVS View C...
  • 12:01 PM EST BOB LANG

    Rolling Up Apple

    Just the other day we added some Apple calls on th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login