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The most recent rotation has benefited the healthcare sector, so it’s rational to turn our attention to some setups in the space. I am already long ENDP, mainly because of the constructive technical action. The market loved their last earnings report. While earnings and sales growth continue to be negative, both numbers came above analysts’ estimates. More importantly, the stock gapped up and finished near the highs of its earnings day’s range. ENDP spent the following few weeks consolidating in a tight range and consistently finding buyers near $15. It looks like it ready for another leg higher as it has been perking up along with many other biotechs this week.
Looking at areas of potential technical resistance, a short-term target of $19-20 is reasonable. A move below $15 would invalidate my thesis.