Why Teva Pharma $TEVA Is A Screaming Buy

Dark clouds are hovering over Teva Pharma Industries (TEVA) but light is starting to shine through. Let me blow your mind with this simple analysis. First, let’s set the scene. On August 15th, 2019, Teva made a new multi-decade low at $6.07. Since then the stock has inched higher. Yesterday, news broke that Mallinckrodt (MNK), another opioid maker announced they may have to file for bankruptcy. In a 1 for 1 world, this should have been devastating for Teva, the worst news yet for the sector. Teva should have been crushed and taken out the $6.07 low from August 15th. However, it did not and has rallied sharply off the morning lows. This is VERY bullish for Teva Pharma.

The general rule states: When a stock does not make lower lows on worse news, accumulation in the shares is has started and is heavy (usually by institutions).

If big institutions are accumulating shares of Teva, thus not enabling it to make new lows, this is extremely bullish for shares of Teva Pharma Industries. It should signal a turning point in the stock and maybe for the sector. I could fill your head with lots of other things like countless technical indicators like MACD or RSI that are oversold. But the clearest signal is Teva not making a lower low on worse news for the sector. This is simple analysis but extremely effective. The upside target on this is $10 in the next month or so. A year from now, we could be talking about Teva at $25 or higher.

Gareth Soloway

InTheMoneyStocks