Teva Stock Flashes Bearish Signal Once More

TEVA has run up to a trendline with bearish implications in the past

Managing Editor
Oct 17, 2018 at 2:30 PM
facebook X logo linkedin

Drugmaker Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is lower today, down 4.7% to trade at $21.24, amid reports that Express Scripts (ESRX) excluded Teva's migraine drug from coverage. In addition to the drop today, TEVA recently flashed a bearish signal, indicating the slide may be far from over.

Teva stock, for the second time within a month, is within one standard deviation of its 40-day moving average, after a lengthy stretch below this trendline. In the past three years, there have been 11 other signals of this kind, after which Teva shares were down by an average of 4.8% a month later, and positive only 27% of the time, per data from Schaeffer's Senior Quantitative Analyst Rocky White.

Daily Stock Chart TEVA

TEVA's drop today likely snaps a three-day winning streak. Another 4.8% drop in the next month would have the stock breaching the $21 level, which has recently emerged as support the last two months.

There is ample room aboard the bearish bandwagon in the event of a TEVA downturn. Short interest fell by 11% in the most recent reporting period, to 31.8 million shares -- the lowest since July 2017.

The good news for options traders is that TEVA sports a Schaeffer's Volatility Scorecard (SVS) of 93 out of 100, which shows the stock has tended to make larger-than-expected moves on the charts compared to what the options market had priced in. In simpler terms, it may be an opportune time to speculate with Teva options.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI