TEVA - jumping on restructuring news

Whilst the main market saw a day of moderate swings, there was notable strength in Teva Pharmaceuticals (TEVA), which saw an intra high of $18.98, and settling +10.2% at $17.30. The stock is still within a m/t bearish trend, but that looks set to be decisively concluded in early 2018.


TEVA daily

TEVA monthly

Summary

Suffice to add, huge layoffs of around 14k, a suspended dividend, and the stock soared in pre-market by around 18%. For those working for Teva, it was a very bad day, but for the stockholders, its was a good day, and it marks the beginning of what is an overdue major restructuring.

Technically, the m/t bearish trend looks set to be broken in early 2018. I would keep in mind the key monthly 10MA, currently in the $23s, but that will be down to $20 by March/April.

I am m/t bullish TEVA. First soft target is a monthly close above the monthly 10MA, which is indeed a target that will be easier to hit with each month. Any monthly close above the 10MA will offer secondary of the 32/33s.