Friday, October 31, 2008

Schering Seen as an Attractive Bearish Play -- at the $14 Level?!

In "Drug Stocks: Short Stories", Joseph Hargett, in Forbes Magazine -- citing what he sees as Schering's near term range of $13 to $15 -- and seeing Schering nearing the top of the range again -- opines that SGP is thus "due for a drop to the $13 region, or below" -- his words, not mine:

. . . .Schering Plough (nyse: SGP) is another struggling pharmaceutical stock that could make for a nice bearish play. Since setting a near-term peak of 33.40 in mid-October 2007, SGP has plunged more than 57% while battling overhead resistance from its 10-week and 20-week moving averages. The shares are now trading in the teens and have bounced between support at the 13-level and resistance at the 15-level since mid-October 2008. The equity is currently trading near the upper rail of this trading range and could be poised for another drop to the 13-region or below. . . .
I agree -- except that I think the bottom is probably closer to $10 -- thus my graphic, above.

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