Two health care stocks — one to buy, and one to watch. Let’s look at Anthem (ANTM) and DaVita (DVA). (May 03, 2016)
Today I want to look at a couple healthcare stocks. First of all Anthem ( NYSE:ANTM ); this is at a really good buy point, that’s why I’m mentioning it. You can see this stock has been trending down for quite a while. It pushed up against the 200-day moving average, and that actually held for a while. It looks like maybe this is it. But as you look at a chart like this, what you’re waiting for is this breakout above this last high here, and that’s kind of a buy schedule. Or at least a signal that this downtrend and sideways consolidation is kind of in the next phase which is in an uptrend.
So you get the breakout, this is really the buy point, right here. This is your opportunity to buy, April 4th, that was a month ago. So this is the breakout buy point and then the stock just continues to do what it does, right? Trading in a range. Well now after this breakout could it be a fake out? Or maybe not, this was a power move. Lots of accumulation here. The stock is now back to a key point here between the 50 and the 200-day moving average. There’s a tiny little space, the stock has pushed just above that, and so this is an opportunity for you to buy this stock anticipating that we’re still going to get additional moves higher. So this is a stock that works. You put a stop just a little bit beneath that.
Now DaVita ( NYSE:ANTM ) is showing a similar pattern here. But this is the big difference, really, earnings are reporting tomorrow. I forget whether they are before or after the market but it doesn’t matter, I’m not going to buy a stock just before the company reports earnings, unless it’s totally deeply sold off and has no place to go but up. That’s not the case here. This stock has been trending sideways. I would just avoid this, wait to see what happens. But as far as Anthem ( NYSE:ANTM ), I think you can pull the trigger on this and keep a fairly tight stop right underneath this level. Anyway, those are two stocks I wanted you to check out.
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