For each buy idea, you’ll see:
1-the pattern in blue or green
2-target
3-the suggested stop in red
For each short idea, you’ll see:
1-the pattern in red
2-target
3-the suggested stop in blue
Buys
Bullish Pattern Breakouts
PODD, GILD
Watch list
GOOGL, META, SPOT, FTNT
As we’ll discuss in more detail inside today’s Opening Look, Healthcare was the leading sector yesterday for just the third time since 7/19/24. After topping in early September, the XLV Healthcare ETF has been in a distinct downtrend. Not surprisingly, many of the sector’s components also have suffered over the last three-plus months. That said, there always are pockets of relative strength, including the two stocks we’re discussing today: PODD and GILD.
The names on our watch list all have constructive chart patterns, too, but they are reporting earnings within the next two weeks. Thus, while we don’t recommend trades for companies that are close to releasing their quarterly financials, they should remain on our radar screens at the very least.
Bullish Pattern Breakouts
Since topping out in early November, PODD has been moving sideways. While that’s not exactly exciting, the stock has hung near its highs the whole time. And now, PODD is getting close to completing this inverse H&S pattern.
Of the trade ideas we’ve suggested in recent weeks, the best ones have been ISRG and BSX, both of which are medical equipment stocks – like PODD. A breakout through the 280 zone would target 307.
PODD reports earnings on 2/20/25.
Biotech stocks have had a wild ride over the last few months, too. GILD has been one of the best within the group since November, managing to hold near its 50-day moving average after the post-election dip. And because it did, the stock now has formed a potential cup and handle formation. A breakout above the resistance line (just below 95) would target the 102-zone.
GILD next reports earnings on 2/11/25.
Watch List
The patterns speak for themselves, and for anyone who decides to trade them, be very mindful of their earnings dates (source: Trading View).
META 1/29
GOOGL 2/4
SPOT 2/4
FTNT 2/6
