Bull Signal Flashing for BHC Stock After Analyst Upgrade

BHC shares are on the cusp of oversold territory

Digital Content Manager
Aug 15, 2019 at 1:39 PM
facebook X logo linkedin

Canada-based drugmaker Bausch Health Companies Inc (NYSE:BHC) is hovering atop breakeven today, despite an upgrade from TD Securities to "buy" from "hold," per TheFly.com. This upgrade comes on a dip for BHC, which has lost 11.6% so far this month. However, during this sell-off the equity did trigger a historically bullish signal that could indicate a bounce on the charts. 

Specifically, the stock just came within one standard deviation of its 80-week moving average, after a lengthy stretch atop the trendline. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, this has happened 11 times before. BHC was higher three months after these signals 70% of the time, and averaged a gain of 7.2%. A similar move, from its current perch at $21.06, would put the pharma concern back atop the $22.50 level -- a region that it's been struggling beneath this month. 

In addition, BHC could find a familiar foothold in the $20.50-$22 neighborhood. This area has contained most of the stock's pullbacks over the past year, with the exception of a late-December sell-off. Plus, a short-term bounce could be in the cards for BHC, based on its 14-day Relative Strength Index (RSI) of 31 -- which sits just on the cusp of "oversold" territory.

BHC chart aug 15

TD Securities isn't the only analyst firm banking on a bounce for the security. Nine of the 13 in coverage say the stock is a "buy" or better. Plus, the consensus 12-month price target of $30.73 represents a 46% premium to current levels. 

Elsewhere, short sellers have been hitting the exits. Short interest fell nearly 10% in the last two reporting periods, and now the 9.99 million shares sold short represent only a slim 2.8% of the stock's available float.


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI