This chart of Alexion (ALXN) is a “must see”. (October 10, 2012)

by DAN ALXN 
I’m Dan Ftzpatrick at StockMarketMentor.com on Wednesday the 10th. of October. I want to look real quick at Alexion ( $ALXN Alexion Pharmaceuticals, Inc ). This is a stock that I’ve been covering for quite awhile and it’s coming down to one of those rare buy points. I want you to be careful though on this because there’s a couple other stocks, members I mention these in the Strategy Session, but here’s the dynamic, look at how steep this stock had to drop in order to hit here the 50-day moving average, here it just kind of drifted sideways here you know not quite sideways but you could see definitely a difference here verses this. So this makes me leery of really taking a big position here. You can see volume today was about average, a little bit less than average, but yesterday’s volume was much higher than average and so that gives me the sense that, you know, the stock is under distribution. I’m not looking for a big bounce here but I am looking for some bounce; so what I would suggest doing is this, if you’re long the stock fine, you got a really good profit going if you’ve been holding it for any period of time at all, just watch the 50-day moving average; the stock just came out of a base here you could say, “Well, hasn’t gone up that much after being in this kind of base,” and I agree, my bias remains to the long side, but if Alexion ( $ALXN Alexion Pharmaceuticals, Inc ) starts trading below the 50-day moving average you don’t want to be long the stock, you don’t want to mess around with it. Okay, that’s it for this Chart of the Day. Members get over to the Strategy Session.

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