Aspen breakoutJSE:APN breakout happened last week. It could be the start of a good thing. Fingers crossed. Manage risk accordingly.
Aspenphamacare
AspenSolid move from JSE:APN , on a 52-week high list, and depending on how you see things, a breakout on a cup-and-handle.
Aspen Wedge Breakout looks promising to R194.76Falling Wedge has formed on Aspen.
The price has broken out and looks like it's set to rally.
A conservative trader could wait for a retest, or an impulse trader could trigger it now.
7>21>200 -Bullish
RSI >50
Target - R194.76
SMC: Sell Side LIquidity
Smart Money buys into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter into their trades.
ABOUT THE COMPANY
Aspen Pharmacare is a leading global pharmaceutical company with a deep footprint in both emerging and developed markets.
Founded in South Africa:
Aspen Pharmacare was founded in 1850 in South Africa, starting as a single pharmacy in Durban.
Global Presence:
Aspen has a strong international presence, with operations in about 56 countries across six continents.
Product Range:
The company’s primary business is in the provision of branded and generic pharmaceutical products, as well as infant nutritionals and consumer healthcare products.
Leadership:
The company was co-founded by South African businessman Stephen Saad, who remains the CEO.
Significant Player in ARVs:
Aspen is one of the world's largest suppliers of antiretroviral (ARV) drugs for treating HIV/AIDS, contributing to the global fight against the disease.
Manufacturing Prowess:
Aspen owns and operates 23 manufacturing facilities across 15 sites, demonstrating its vast manufacturing capabilities.
#APN Aspen Pharmacare looking constructive on the weeklies #jseScanned a couple of stocks on the JSE and it was tough to find many decent setups although Aspen is one that stood out for me on the LONG side.
3 reasons I think this setup is constructive and likely goes higher to at least R200
(1) Weekly price action has been making consecutive higher lows since bottoming out in August 2019. (showing relative strength in comparison to the market which has been moving lower.
(2) We are trading above both the 200 week moving average as well as the yearly Pivot.
(3) Divergency on RSI where RSI shows higher lows even though price made an equal low on the last move down.
I think one can buy this at current levels (approx R146.00), using a stop loss as a weekly close below 132 and a target of approximately R200. From a risk standpoint that's a risk of R14 for a target of potentially R54 which is quite decent.
Let's see how we go over the next couple of weeks
Aspen weaknessJSE:APN back at the support level, the price is below a decline 200MA. One can only hope that it finds support at this level.
AspenJSE:APN has been consolidating since June, the stock is now at an area of value, at a potential resistance level. Waiting to see if it can break above, it'll be interesting above R165/share.
Aspen, worryingWatching JSE:APN closely, interested in seeing today's close. Will it manage to stay above the 200EMA, or it'll close below it? Not interested in a long position below that level.
APN - Possible gap close coming upTraders don't like gaps in the price and there has been a large gap in JSE:APN since March this year.
The price ha finally reached the top of the candle that caused the gap, and if it confirms a break above the spike, I wouldn't be surprised if it goes all the way up and closes the gap. Let's wait and see what happens.
APN possible turning pointJSE:APN has reached quite a significant resistance level which could mean a change in direction to the downside. I will keep an eye on this one to see if it breaks through the resistance and continues upwards. If so, I will enter long.
My outlook is bearish, however, and I anticipate that it will fail to break through and turn downwards for a short. As always, I will wait for confirmation before entering either way.
ASPEN upswingA bullish engulfing candle pattern formed on JSE:APN friday at a support level. This could mean an upswing is imminent. The stochastic has also recently made an upswing.
ASPEN PHARMACARE (APN) DAILY TIMERAME BUYI am expecting a bullish momentum as we complete a correction pattern, before further downside. Targets should be at the top of the flag pattern and position size small, as we are in a downtrend.
Are ASPEN's Woes Nearly Over?Aspen is a global supplier and manufacturer of branded and generic pharmaceutical products as well as infant nutritionals and consumer healthcare products in selected territories.
ASPEN has been under the microscope over the past few years with various negative rumors and investigations driving the share price lower and lower. I believe that we haven't quite seen the bottom yet but that there is a possibility of strength to come soon. Perhaps a take over is what they need?
Technicals
The corrective structure has seen a break of the 61.8% Fib retracement level and is currently trading below it. I am expecting to see wave 3 end at the 78.6% level. In my opinion, it is likely that there will be a rally from that point onwards and that the structure will break to the upside. A larger retracement than that would indicate serious repercussions for ASPEN and I am certain that they will do everything in their power to avert a further decline in share price.
Flash Note: Aspen Pharmacare (APN)Last week Lester highlighted APN as as "opportunistic buy" after the fall from R290.
It looks like R263 to 264 is still a level where buyers have lined up to take advantage of the fall. This is also in line with the 50dma.
Once again stay cognizant of the USDZAR.
MariusGrobler301 is having a look at this trade for our clients.
