Singapore (18 August 2020) — Emergent Biosolutions (EBS) listed on the NYSE since 15 Nov 2006, develops vaccines and therapeutics against biological agents that are potential weapons.
Chart 1
Since September 2019, EBS has been outperforming S&P500 by as much as 133% since September 2019. It outperformed the Index even during the major market correction at the end of February this year as depicted by the chart above. The company’s fundamental figures further support such strong performance in face of global economic crisis, with earnings per share (EPS) showing positive change of 890% on the last quarter, sales increased to over 62% on the last quarter with an annual return-on-equity (ROE) of 14%. EBS market cap is at USD 7bn with 58% of its shares held by institutions including the likes of Schwab, Wells Fargo and Vanguard.
Chart 2
Chart Link: https://www.tradingview.com/x/tOHiZEQL/
EBS chart shows the current price action is approaching previous peak on 6 August 2020 at USD137.61. A break of the previous peak may suggest further bullish move perhaps to the next round number of USD150 – USD200 area. This suggests re-entry opportunities too. A strong volume action when the price breaches the previous peak would be needed to confirm such move.
Stop loss may be placed according to your risk tolerance level, but not going more than 7% would be ideal. Our target profit range would be around the 20% before we can expect some price correction. However, this target could change from time-to-time and you should assess it accordingly on a daily/weekly basis especially when the price closes below the first support line around the USD120 area.
Overall, EBS chart still shows a bullish bias as the (200-day moving average) MA200 provides a good support in the past (from 23 Mar 2020) lifting the price to the current level. -/www.halaluniverse.net
Disclaimer: Mr Mukhriz Mangsor is a Certified Financial Technician and an independent trader who contributes to www.halaluniverse.net on a regular basis. He focuses his attention on the technology stocks listed on Nasdaq.The content of this article should not be considered as a recommendation to buy or sell a security. All information is intended for educational purposes only and not as an investment advice. You should seek a professional investment advice from licensed investment advisors.
