BALTIMORE (Stockpickr) -- It doesn't matter which side of the political aisle you sit on -- one way or the other, the Supreme Court's Obamacare ruling on Thursday has big implications for the country as a whole.And, no surprise, it's got big implications for a handful of health care stocks. Today, I want to show you five that are breaking out as a reaction to the news. On Thursday, the Supreme Court ruled 5 to 4 to uphold the individual mandate in President Obama's Affordable Care Act. It's a controversial law, and the Supreme Court's decision is equally controversial, but I'm not here to talk politics. Instead, I'm more interested in the trading opportunities that are coming out of the ruling. >>4 Stocks Set to Soar on Bullish Earnings Hospital operators rallied hard on Thursday from the news, but in most cases, those boosts were too quick to take advantage of. Still, plenty of investors were scouring the healthcare industry for buying opportunities, and all of that demand pouring into the sector is just now creating a handful of technical trading opportunities this week. For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. Here's a look at five technical health care setups that could deliver breakout gains to your portfolio this week.
Brookdale Senior Living
AllerganAllergan ( AGN) has been in a solid uptrend since back in September 2011, when the broad market was selling off. Since then, shares have rallied more than 31% as the stock has bounced up the uptrending channel. A bounce last week points to even more upside in 2012. The fact that Allergan has been trading in a well-defined channel since September makes this stock especially tradable -- after all, we've got target support and resistance levels both to the upside and the downside. The fact that Allergan has bounced off of trendline support no fewer than five times over that stretch also tells us that this stock can consistently catch a bid at support. The 200-day moving average has acted as a good proxy for support over the course of the uptrend - it's a logical place to put a protective stop. With AGN bouncing off of support this week, now's a good time to be a buyer. Risk-averse traders should aim to exit the position well before AGN approaches trendline resistance. Allergan was included on a list of 7 Stocks Set to Surpass $10 in 2012.
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