“I notice that you did not mention TEVA in your analyses of pharmaceutical companies. There shares have fallen to the $40 area and seem to be forming a base at this level. What is your analysis of this leading company?”

Eoin Treacy's view Thank you for this question but yesterday's review focused on companies that are likely to benefit from the diabetes pandemic. To the best of my knowledge Teva Pharmaceuticals does not fall into that category.

The share may be forming a base but I would personally be wary of that conclusion until it has sustained a move above the 200-day MA. When we look at the last decade the most important thing the price has done was last year when it broke the 10-year progression of higher major reaction lows. If this is a base, more time is probably needed before a recovery can be supported. A sustained move below $37 would increase potential that the downtrend will be extended.