Strength in Alexion Pharmaceuticals May Be Temporary

Be cautious about ALXN in the short-run.

Alexion Pharmaceuticals (ALXN) is up sharply Monday but this strength only looks temporary. Let's check out the charts and indicators. 

In the updated daily bar chart of ALXN, below, we can see that the shares briefly broke below the rising 200-day moving average line. Trading volume does not look like it expanded much on the break of the moving average line so it must not be of concern to the holders of ALXN.

The 50-day moving average line looks like it is rolling over and the On-Balance-Volume (OBV) line has rolled over so far this month. A declining OBV line means that sellers of a stock have become more aggressive.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for an outright sell signal. 

 

In the weekly bar chart of ALXN, below, we see a mixed picture. Prices are testing the rising 40-week moving average line.

 

The OBV line has been weak since May and the MACD oscillator has been narrowing toward a possible bearish crossover. 

 

 

In this daily Point and Figure chart of ALXN, below, we can see a possible downside price target in the $95 area. 

 

 

 

Bottom-line strategy: While some state-of-the-art companies near Boston can turn on a dime I would be cautious about ALXN in the short-run.

 

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