«

»

Mar 20

Long – PerkinElmer ($PKI), Magellan Health ($MGLN)

Here are two more longs I want to add to our portfolio this morning, companies in different areas of the healthcare sector: PerkinElmer ($PKI), and Magellan Health Services ($MGLN).

Both were brought to my attention by an article on Seeking Alpha by Jake Mann from Insider Monkey. He highlighted 5 smaller co. stocks shown as holdings in the 13F filing for Paul Tudor Jones’ Tudor Investments. The article was back in early February but I’ve been watching them since for a good technical risk/reward entry.

 

PerkinElmer ($PKI)

$PKI had just raced to fresh highs and looked as if it might consolidate back into another those holding patterns it went through this time last year. It came back out of smartly though under good accumulation and has since retraced slightly to give us what I think is a low-risk entry.

AlphaCapture

You can see it better detail on the daily chart below. That $32.29-$32.79 band now becomes major support and our invalidation point, we’d get an early warning it could be in danger with a break of the MA’s, or coming back inside the descending channel.

AlphaCapture

 

Magellan Health Services ($MGLN)

$MGLN has just successfully broken above its December highs and is now just a whisker away from taking out the all time high levels it briefly touched and reversed from in July. I like to see accumulation on a stock break resistance or attempting to take out a major level so the recent advances on increased volume are encouraging.

AlphaCapture

Although I generally prefer to use actual price levels rather than MA’s to confirm invalidation of a trend, the $47.48 level looks a little too generous, and the 200-day which is now rising may serve as a better indication our long rationale is under threat.

 

Links:

Insider Monkey: PTJ’s 5 most under-covered stock picks (Seeking Alpha)

 

Leave a Reply