Mylan (MYL) – On May 29, with Mylan at under $32, I suggested MYL as a trade with a target of $36, saying:
“In mid-May the stock broke through a double top to new all-time highs on high volume and a CBR buy signal, and the MACD is bullish. The trading target for MYL is $36, but long-term investors will probably enjoy a higher return.”
Despite a recent upgrade by UBS in which it raised its 12-month target on Mylan to $39 from $36, current market conditions suggest that traders should take profits in stocks that have attained short-term goals. Since it is likely that MYL could retreat through the recent continuation gap, sell now, but buy again on a retracement under $34.