Do you think investing in this stock is a good idea. Is now a good time to invest in it?
Thanks for the assignment. Teva Pharmaceutical Industries Ltd. (TEVA NYSE) is a global player in healthcare developing and producing generic and name brand drugs as well as active ingredients.
In the last number of weeks the company has lost patent protection on a compound that generates 20 % of revenue. But the decline in the stock started just over a year ago when it topped out near $70.00.
A probe of the charts will help identify if now would be a good time to buy.
The three-year chart depicts a stock that has been dealing with an established downtrend line and resistance along the moving averages. The MACD and the RSI both generated sell signals in August of 2015 when the shares touched $70.00. The momentum indicators have provided buy and sell signals over the last year as TEVA traded in a down channel. At the moment there is no evidence to suggest that we can expect a trend reversal in the near term.
The six-month chart illustrates the trading opportunities the stock has offered since March. The best way to manage this investment is to look for profitable trades that might fit your risk tolerance. The dividend offers a yield of 2.67% but that doesn’t make TEVA a buy and hold stock.
Next time I’ll examine the charts for Dream Office Real Estate Investment Trust (D/UN TSX) for Kevin.
Make it a profitable day and happy capitalism!