Teva Pharmaceuticals (TEVA) has been all over the place since early October, but two bullish patterns are taking shape and the stock could be poised for a breakout. First, the stock formed a massive island reversal with the late October gap down and the late November gap up. Second, the pattern since mid October looks like be an inverse head-and-shoulders with the red trend line marking the neckline. Notice that upside volume picked up as the stock surged above 40 in November. Short-term, a harami formed on Monday as the stock tested the gap zone. A breakout at 41 would prove bullish here.
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