Great call. Your prediction was spot on. What analysis did you do to arrive at your prediction? However, I hang on to my position and look what happen today. Should I take my money and run?
I used the daily chart and price wasn't able to break through the SMA line and I figured it will bounce back and go lower first...
To be fair, they did run it up a few bucks to near $19 so it's back to where it was, a few days ago. As for Copaxone generic, that has been expected all year, as 3 of their patents were invalid in the spring...March/April maybe. It was only a matter of time and they would have had a competitor in June but they had problems at their manufacturing facility. Definitely doesn't help their cash flow to pay down debt though. Just like Valeant you'll need a multi-year horizon IMO.
Well, my prediction was 2 months ago and based on TA, not fundamentals. What interesting is how similar TEVA's and MYL's daily charts are.
I do fundamentals but near term, that has nothing to do with reality, supply and demand, so may I ask, from TA, what is your assessments of near term actions? Regards,
TEVA made a descending triangle today, so I would expect it to dip below $16. In the long run, the 2 stocks should converge back, because between them, the same profit potential exist, just someone else making that same profit. (well, maybe this is stupid logic we shall see) The percentage changes were almost identical just in different directions, TEVA down 14.5% MYL up 16.2% (also helped by overall market bullishness).
Thank you for your reply. May I ask another question regarding trading options: So, if I go long both TEVA and MYL call options, it is like buying a TEVA straddle but since TEVA puts are expensive it is better?