Alexion Pharmaceuticlas (ALXN) has rallied over the past several days following a breakdown through the neckline of a head and shoulders formation seven trading days ago. The current rally has brought the stock into the 87-88 range, roughly near or at the neckline and resistance in the 90 price area. In conjunction with the general market rolling over, should that happen, ALXN is shortable here using 90 as your upside guide for a stop, but in general we would allow for no more than 3-5% upside for a stop.
Keep in mind that short-sale targets will generally be more successful in the event of a market rally failure, as continued upside in the indexes can easily drag a short-sale target up further into its pattern. In this case, ALXN could rally up closer to the 90 price area, but objectively it remains within shorting range of this resistance level based one one's personal risk-tolerance and risk-preferences.
Fair Disclosure: We are currently short the stock, but could be in and out of the position depending on the action of the general market and the stock itself.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.