Conclusion, Investment Implications, Strategy
Mylan N.V. (MYL) is currently breaking out higher from 6 weeks of sideways investor indecision. A sustained rise above the upper boundary of this indecision area, currently at $16.14, would confirm the breakout and target an additional 21% rise to $20.00 per share. This is an Asbury Momentum idea.
Analysis and Rationale
Mylan N.V. (MYL), together with its subsidiaries, develops, licenses, manufactures, markets, and distributes generic, branded-generic, brand-name, and over-the-counter (OTC) pharmaceutical products in North America, Europe, and internationally. It offers active pharmaceutical ingredients and finished dosage forms; and antiretroviral medicines to treat HIV/AIDS. The company also provides prescription products, such as EpiPen Auto-Injector; Perforomist Inhalation Solution; Dymista; Creon; and Influvac, as well as YUPELRI, an inhalation solution for the maintenance treatment of patients with chronic obstructive pulmonary diseases. In addition, it markets OTC products, including Cold-EEZE, MidNite, Vivarin, Brufen, CB12, and EndWarts. Mylan N.V. has collaboration and license agreements with Pfizer Inc.; Momenta Pharmaceuticals, Inc.; Theravance Biopharma, Inc.; Biocon Ltd.; and Fujifilm Kyowa Kirin Biologics Co. Ltd. The company was founded in 1961 and is based in Hatfield, the United Kingdom.
Chart 1 below plots MYL daily since December 2019 along with its 200-day moving average, a widely-watched major trend proxy. The green highlights show that the stock is currently breaking out higher from about 6 weeks of sideways investor indecision from the mid March lows. A sustained rise above the upper boundary of this indecision area, currently at $16.14, would confirm the breakout and target an additional 21% rise to $20.00 per share.
Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $15.78 area, a long entry price of $16.51 would provide a 1:4.8 risk/reward ratio (risking $1.00 to make $4.80) with an initial risk of 4.4%.
Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you in light of current market conditions.