Alexion Pharmaceuticals Ready to Breakout?

NASDAQ: ALXN | Alexion Pharmaceuticals, Inc. News, Ratings, and Charts

ALXN – An ascending triangle pattern has formed in the chart of Alexion Pharmaceuticals (ALXN). A breakout could occur. Learn how to profit off this potential trade.

An ascending triangle pattern has emerged in the chart of Alexion Pharmaceuticals (ALXN) and a breakout is expected soon.

ALXN specializes in developing and marketing drugs for rare, life-threatening medical conditions. Its blockbuster product, Soliris, is approved for a variety of disorders such as paroxysmal nocturnal hemoglobinuria, atypical hemolytic uremic syndrome, and generalized myasthenia gravis.

The company reported its latest financial results last month and beat estimates on both revenue and earnings. Revenue was driven by strong momentum in Soliris and its recent label expansions. Its next generation drug, Ultomiris, is also selling very well and is being evaluated for COVID-19 treatment.

ALXN had $2.3 billion in cash at the end of the third quarter. This was down from $2.9 billion in the previous quarter and below its long-term debt of $2.6 billion. Though the company has a healthy current ratio of 3.8.

The firm has a strong history of revenue growth with a five-year growth average of 18.5%. Sales are expected to grow 9.7% next year. The stock’s Price to Earnings ratio is 27.8, well below the S&P 500. Its Price to Book ratio is also relatively low at 2.4.

The stock has shown mixed momentum as it has been trending downward over the last month, but has shown stronger long-term momentum. ALXP is rated a “Buy” by our POWR Ratings system.

Take a look at the 1-year chart of ALXN below with the added notations:

  Chart of ALXN provided by TradingView

While climbing a clear trendline of support (green), ALXN has also formed an important level of resistance at $128 (red), thus forming an ascending triangle pattern.

An ascending triangle is a bullish pattern and we expect that ALXN will break the $128 level in the not-too-distant future.  Therefore a trader could buy ALXN after it suprasses $128 with the expectation of a breakout.

ALXN is trading between key resistance and trendline support. At some point, one of those lines will break and likely dictate the stock’s next, bigger move.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


ALXN shares were unchanged in premarket trading Tuesday. Year-to-date, ALXN has gained 9.88%, versus a 15.84% rise in the benchmark S&P 500 index during the same period.


About the Author: christian


Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ALXNGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

7 Simple Strategies to Beat the Market

Steve Reitmeister has been investing successfully for over 40 years. In his new presentation he shares his top 7 strategies learned over the years to help investors beat the stock market (SPY). Discover these strategies now to improve your investing results in the months and years to come.

:  |  News, Ratings, and Charts

AutoNation: A Great Value Stock

Shortages in parts, especially semiconductors, this year, has been a boon to auto dealerships. Consumers resorted to buying used cars and parts, which benefits a company such as AutoNation, Inc. (AN). The stock has seen strong revenue growth and share gains this year. Since AN is still very much undervalued, there is a lot more upside left for investors.

:  |  News, Ratings, and Charts

Go From Zero to 60 with a Still-Early-Stage Stake in Fisker

Admittedly, it took a long time for Fisker (FSR) to unveil its all-electric SUV. With that event now completed, FSR stock is prepped for a rally.

:  |  News, Ratings, and Charts

Bull Market Update: Year End Targets?

4,700 seems to be a point of serious resistance for the S&P (SPY) leading to an extended consolidation period hand in hand with violent sector rotation. Why is this happening? What happens next? And how to trade this environment? The answer to these questions and more are discussed in this market commentary below...

:  |  News, Ratings, and Charts

Go From Zero to 60 with a Still-Early-Stage Stake in Fisker

Admittedly, it took a long time for Fisker (FSR) to unveil its all-electric SUV. With that event now completed, FSR stock is prepped for a rally.

Read More Stories

More Alexion Pharmaceuticals, Inc. (ALXN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ALXN News