Pharma Stock May Be Just What the Doctor Ordered

by Sam Collins | August 29, 2012 1:46 am

The Medicines Company (NASDAQ:MDCO[1]) — This pharmaceutical company is focused on the treatment of critical care patients through the global hospital network. All of its acute-care, generic products are injectable. It recently entered into an agreement with AstraZeneca (NYSE:AZN[2]) to market a key heart drug called Brilinta.

Analysts estimate that the company will earn 90 cents in 2012 and $1.26-plus in 2013.

Technically the stock broke from a right triangle in June, and then retreated to its uptrend line and 50-day moving average where it found support.

In July, it gapped higher as part of a bullish flag formation and recently popped from its 50-day moving average again. This is a very bullish pattern, and it supported by a buy from the stochastic. Our trading target for MDCO is $30-plus.

Trade of the Day – The Medicines Company (NASDAQ:MDCO)
Click to Enlarge

Trade of the Day Chart Key

  1. MDCO:
  2. AZN:

Source URL:
Short URL: