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Pharma Stock May Be Just What the Doctor Ordered

The Medicines Company is trading in very bullish pattern supported by a stochastic buy


The Medicines Company (NASDAQ:MDCO) — 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) 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)
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Trade of the Day Chart Key

Article printed from InvestorPlace Media,

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