Every Sunday, we will go through our list of dojis for the week and see if there is one stock worth taking a look at. This will not be any recommendation to buy or sell. Instead it will be more of a recap of how the stock performed after the doji alert was posted.
Our first doji to ever be analyzed will be ALXN (Alexion Pharmaceuticals, Inc.). This doji had an interesting story.
The stock had frequent bumps up against its 200 day moving average (the red curve) in the days before the doji was alerted on May 26th. Indicating that the stock was experiencing resistance in the 103-105 price range.
Also the stock had a recent run above its 200 day moving average at the end of April. These were good signs that if a breach occurred above the 103-105 resistance, there would be nice upward push. The push higher was not confirmed until May 27th when the stock broke the 200 moving average line.
The moving average break was just the beginning as Alexion had some positive news occur. Their top drug, Soliris, was having patent legal issues with Amgen (AMGN), and had rumors that Alexion and Amgen come to terms of some type of settlement regarding the issue. (Fool.com, "Nasdaq Today: Why Alexion and Workday Stock Are Soaring"). This news was reflected on the stock price on May 28th.
The combination of all these factors could have given confidence of a continued bullish run on May 29th. Hard to say how far this run will go. Maybe another doji will be alerted to show weakness in the run later. Stay tuned.
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