Aspen Pharmacare

Weekly chart Aspen has been amongst the darlings of the COVID-19 crash recovery. The stock initially started building a base after a bullish divergence when the stock hit its lows of August 2019. The COVID-19 March crash made higher lows, the stock continued to make higher lows on the weekly chart. The stock is up +40% since the March 2020 lows. We saw some acceleration after the announcement that J&J will be using Aspen’s Gqeberha factory, Vaccine packaging. The stock finally broke from the base taking out the R168 resistance, and hasn’t looked back since. Potential short to medium term target R248. Potential long term target R438 Looking at the Daily chart. When a stock starts to move to new multi year highs. I like drawing boxes inspired by Nicolas Darvas. Aspen has been breaking to higher boxes with relative ease. The stock is currently within the R184 – R200 having just got in it recently. At the moment Aspen is at holding status. Waiting to see how the stock will behave around R200. If the stock breaks R200 it’s time to buy the stock again. While being on the lookout for continuation patterns between R184 – R200. Not forgetting a stop loss be R184 – R200 after the breakout. Wind at the back The stock broke a longer term downtrend and broke above the 50 month EMA. Now that’s the dip I like to buy
The trade

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