We last reviewed the charts of Perrigo Corp. (PRGO) on April 9, 2020. We wrote that "After dealing with a drug recall fiasco two years ago I cannot wait for drugs and supplements to be made in the U.S. again. I guess I have some skin in the game when I look at PRGO. Traders could approach the long side of PRGO at current levels, risking a close below $41. Our initial upside price target is $56."
PRGO traded up sharply Thursday so let's pay a visit to the charts again of this healthcare supplier that develops, manufactures and distributes over-the-counter and prescription pharmaceuticals.
In the daily bar chart of PRGO, below, we can see that the shares broke a downtrend line and have rallied above the 50-day and 200-day moving average lines. The 50-day line is moving up fast and could soon close above the 200-day line for a bullish golden cross buy signal.
The daily On-Balance-Volume (OBV) line has been moving higher the past three months to support and confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly bar chart of PRGO, below, we can see a large sideways pattern the past two years plus. The top end of this large pattern is the $60 level and a weekly close above it will be a serious upside breakout.
Prices are above the 40-week moving average line while the OBV line is bullish and the MACD oscillator is close to crossing above the zero line as a new buy signal.
In this daily Point and Figure chart of PRGO, below, we can see an upside price target of $48 that has been reached.
In this weekly close-only Point and Figure chart of PRGO, below, we can see a tentative price target in the $62 area.
Bottom-line strategy: PRGO is on the move and rallying. A weekly close above $60 is a major long-term upside breakout. Go long here. Risk to $44 for now.
