Will Alexion Pharm Inc breakout?

Our stock screener has spotted Alexion Pharm Inc (NASDAQ:ALXN) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:ALXN.

Technical analysis of NASDAQ:ALXN

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall ALXN gets a technical rating of 9 out of 10. Both in the recent history as in the last year, ALXN has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, ALXN did better than 84% of all other stocks. On top of that, ALXN also shows a nice and consistent pattern of rising prices.
• ALXN is one of the better performing stocks in the Biotechnology industry, it outperforms 86% of 577 stocks in the same industry.
• ALXN is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month ALXN has a been trading in a tight range between 178.51 and 187.45.
• Volume is considerably higher in the last couple of days.

How does the Setup look for NASDAQ:ALXN

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:ALXN currently has a 8 as setup rating:

ALXN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 186.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 180.02, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:ALXN?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NASDAQ:ALXN and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.