Bausch Health Cos, Inc. (BHC) recently reported solid quarterly earnings results and raised guidance and the stock jumped on increasing volume as you might suspect it would.
It's been nearly three weeks since and it's finally tested (or nearly tested) its rising 20-day EMA, providing a much better reward-to-risk entry. The AD line is strong and BHC has pulled back these past few weeks on rather light volume. I wouldn't completely rule out the possibility of testing the bottom of gap support at 8.67, but building a position, or starting to build a position, at its current price would not be a bad strategy:
Enter Bausch Health Cos, Inc. (BHC):
The overall stock market has shown short-term signs of possibly topping/consolidating/pulling back. If we see confirmation of that in the form of a near-term downtrend, a stock like BHC could hold up relatively well since it's a part of the defensive health care sector (XLC) and pharmaceuticals group ($DJUSPR). BHC is a small cap, however, boasting just a $3.36 billion market cap. I believe that will benefit the stock during the balance of 2024, and if key support holds from 8.67 (gap support) to 9.06 (20-day EMA, green arrow), BHC should be primed to print higher prices down the road.
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Happy Trading!Tom BowleyChief Market StrategistEarningsBeats.comBetter Timing. Better Trades. |