Trade Ideas Newsletter 04/21/2016

ENDP is at the beginning of a significant breakdown

Based on the previous analysis in ENDP, traders should ensure that their portfolio can handle increased risk from an additional trade. Also check to make sure that ENDP increases diversification of your current portfolio. Lastly, smart traders check how a new position relates to not just their account, but the current market action as well. For example, take a look at the S&P 500. Is it moving higher or lower? Has it recently moved through a key resistance or support level? Be sure to match up your trading actions on ENDP in relation to the overall market movement.

CHART

Right now the custom sentiment levels, measured by Traders For Wealth, indicate an increasingly negative bias toward ENDP. In addition, the price action in ENDP has been moving down as well. This could be a strong sign of an impending breakdown. Traders should view this as a very bearish trade and make sure it matches up with the overall market, and their current portfolio.

Endo Pharmaceuticals (ENDP)

Endo International plc (Endo) is a global specialty healthcare company focused on branded and generic pharmaceuticals and devices. The Company operates in four segments: U.S. Branded Pharmaceuticals, U.S. Generic Pharmaceuticals, Devices and International Pharmaceuticals. U.S. Branded Pharmaceuticals segment includes brand names, such as Lidoderm, Opana ER, Voltaren Gel, Percocet, Fortesta Gel and Natesto, among others. Non-branded U.S. Generic Pharmaceuticals portfolio consists of products focused on pain management. Devices segment focuses on providing technology solutions to physicians treating women’s pelvic health conditions and operates in the business lines, such as women’s health therapy. International Pharmaceuticals segment includes a range of specialty pharmaceutical products and certain medical devices for the Canadian, Latin American, South African and world markets.