Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) Breaks Out Above Key Resistance Level


Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) gained more than 4% to close just shy of its intraday high at $50.97. The stock remained positive on Thursday after narrowing down on Wednesday.

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has been trading in a very volatile manner in the last couple of weeks, the stock is near its 52 week high but not able to sustain the gains and is witnessing strong resistance levels around $50 levels. The stock though broke above its critical resistance level of 50 day moving average which is at     $50, the stock seems to have gained the positive upward momentum and could see make some healthy gains in the next few trading sessions.

The stochastic oscillator for the stock for Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is giving strong buy signals as the oscillator has curved upwards with a strong and positive upward trend, we believe the stock has gained a substantial momentum, The relative strength index too looks strong and is on a upward move, this implies the traders are taking long position in the stock with long price targets, and we believe the stock should rally from current levels provided the stock sustains above $50 level.

The weekly charts also suggest the stock has a potential upward bias, the stochastic oscillator near the 80 mark with a neutral trend, the relative strength index is trending upwards giving strong buy signals. We believe the stock should continue to trade in the same range with an upward inclination.

From the current levels the stock has a strong support around $47.89 and on the upside the stock has a resistance around its trend line level at $53.04.

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Teva Pharmaceuticals has entered into agreements allowing the company to sell the company’s drug to cure Parkinson’s in Japan; the company already has the approval in 40 countries to sell their drug with Japan being the recent county to approve their drug.