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  1. Home
  2. / Investing
  3. / Stocks

Alexion Pharmaceuticals Just Made an Upside Breakout: Here's What to Do

Let's check out the charts of this drug maker that raised its full-year 2020 revenue guidance.
By BRUCE KAMICH
Oct 07, 2020 | 01:04 PM EDT
Stocks quotes in this article: ALXN

Shares of Alexion Pharmaceuticals Inc. (ALXN) made an upside breakout Wednesday. Let's check out the charts of this drug maker that just raised its full-year 2020 revenue guidance by more than $200 million.

When we last looked in on ALXN on July 27 we noted that, "While some state-of-the-art companies near Boston can turn on a dime I would be cautious about ALXN in the short-run."

Prices began to improve in late August so another look at the charts is in order.

In the daily bar chart of ALXN, below, we can see that the shares have sprinted higher and then pulled back twice in late August and the middle of September. The rally that began in the second half of September looks stronger with increased volume and a rising On-Balance-Volume (OBV) line. Prices are above the rising 50-day moving average line and the rising 200-day line.

The Moving Average Convergence Divergence (MACD) oscillator is crossing higher from above the zero line for a fresh buy signal. A stronger picture than what we saw in late July.  

 
 
In the weekly bar chart of ALXN, below, we can see that the shares should be making a new high for the move up when the chart gets updated. Prices are above the now rising 40-week moving average line. ALXN is testing old 2019 resistance that may not be that effective.
 
The On-Balance-Volume (OBV) line has been improving the past three months and the MACD oscillator crossed to a new buy signal at the beginning of September. 
 
 
 
In this daily Point and Figure chart of ALXN, below, we can see the breakout over the high of June (look for the 6 on the chart) and a potential $152 price target. 
 
 
Bottom-line strategy: Traders could go long ALXN at current levels and on any shallow dip toward $120. Risk a close below $115 and look for the $152 area as a price target.
 
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TAGS: Investing | Stocks | Technical Analysis | Pharmaceuticals

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