Endo Pharmaceuticals (ENDP) has been on a recent pullback from a wonderful uptrend. After moving from a close around $60 to a close over $95, Endo has had a 20% pullback and is still well above the 200 DMA! Impressive power! The month of May looks to be a consolidation pattern and a close above $85 would probably break the downtrend. A horizontal break out above the last high of $86.72 is also close at hand. With a 50 period EMA for volume over 2 million shares/day, this stock sets up nicely.
The MACD is starting to turn up, suggesting the lows may be in and it presents you with a tight stop location. The overall success in the Biotech arena has been tremendous. Maybe this one is setting up for its next leg higher. I found this stock by scanning for stocks moving above 75 on the SCTR. One of my favourite scans!
Good trading,
Greg Schnell, CMT
