Yet another biotech stock that is so far refusing to go down amid a major market decline today is
, a specialty pharmaceutical company focused on the women's health care, gastroenterology, dermatology and urology segments of the North American and Western European pharmaceuticals markets. The short-sellers have done a number on this stock so far in 2011, with shares off by over 29%.
This company received some favorable legal news today, after a district court granted a preliminary injunction that prevents
(MYL) from launching a generic version of its oral antibiotic. This bullish development had at one point today sent the stock up by over 5.5%.
If you look at the chart for Warner Chilcott, you'll see that this stock has been beaten down big in the last few months, dropping from its July high of $24.65 to a recent low of $13.63 a share. The stock is also now trading below both its 50-day and 200-day
, which is bearish. That said, the stock is approaching a major breakout above a key descending trend line that started back in early August. This descending trend line has acted as stiff resistance for two months now, so a move above it should be considered bullish.
At last check, this stock has given back a big chunk of its initial run today to $16.49 a share and is now trading at around $15 a share. This puts the relative strength theory in question until we see how the stock closes today. If it closes up, then I would consider that a bullish development.
I wouldn't be a buyer of this stock unless you see it
above that key descending trend line, which will trigger at around $16.60 a share. If we get that move, then add to any long position once the stock takes out its 50-day moving average of $18.04 a share on
. Look for volume that's tracking in close to or above its three-month average action of 2.3 million shares.