NEW BULLISH Plays
Hospira Inc. - HSP - close: 39.40 change: -0.04
Stop Loss: 38.20
Current Gain/Loss: unopened
Entry on July -- at $--.--
Listed on July 10, 2013
Time Frame: Exit PRIOR to earnings on July 31st
Average Daily Volume = 1.0 million
New Positions: Yes, see below
Why We Like It:
HSP is in the drug industry. The stock shot higher in late June following news that the European Medicines Agency Committee had recommended approval of HSP's "Inflectra" drug. This opinion will go to the EU's commission for final approval. This new treatment could help with rheumatoid arthritis, inflammatory bowel disease, and plaque psoriasis.
Since that rally HSP has been consolidating sideways above the $38.00 level in a narrow range. Shares look poised to breakout higher soon. I am suggesting a trigger to launch positions at $39.65. More conservative traders may want to wait for HSP to rally past $40.00 as an alternative entry point since $40 could be round-number resistance.
If we are triggered our target is $44.00. However, we will plan to exit positions prior to the company's earnings report on July 31st.
FYI: The Point & Figure chart for HSP is bullish with a $60 target.
NOTE: I am suggesting we keep our position size small since HSP appears to be near the top of a channel. Tonight's play is a more aggressive entry point.
Trigger @ 39.65 *Small Positions*
Suggested Position: buy HSP stock @ (trigger)