TEVA Analysis

TEVA looks like one to keep on the radar with some price alerts...

 On a weekly chart you can see clearly a top in TEVA that has been broken.

 Looking closer with a 1 day chart, TEVA has entered a lateral consolidation just below what would be considered the neckline of the top or resistance. With the market's penchant for trying to shakeout positions, this is an attractive target to for the market to try to break through, it is similar to the head fake move we played in GLD for a 215% return in several days, except this lateral zone is much bigger than GLD's , much more apparent and a juicier target.

 Here's a closer look at the area I'm talking about. TEVA would only have to move to the $46.50 area to start a head fake move that may very well be worth playing. TEVA is less than 1.25 away from that area.

The daily Money Stream chart shows TEVA's decline, it is also negatively divergent right here at the lateral consolidation zone, which is just under resistance.

I would certainly set some alerts for a move above $46.30-$46.50, should we get such a move, we can quickly check it for distribution which I'm nearly certain we would see. These false breakout moves tend to be some of my favorite set ups as they are lower in risk and they tend to move very fast and very far. GLD was only a very small head fake breakout, yet it returned 212% in 3-4 days. TEVA could certainly have a more volatile failure.