The market action is ugly this week.
But that doesn’t mean that every stock is going down.
When a stock shows strength in a bearish market, that’s a very good sign.
If the indexes are down, but your stock is up…
There’s a good chance it will outpace the market further once things turn around.
Case in point: Horizon Therapeutics PLC (HZNP), the Illinois-based biopharmaceutical company.
Horizon is Setting Up for Another Surge
HZNP first hit our Watchlist back in July, and I told you I was buying this stock.
At the time, volatility was decreasing, and pullbacks were becoming shallower – a sign that less supply was coming to market.
It took off immediately, and the trade never went against me.
Here’s what it looked like on a five-minute chart:
Fast forward to today…
Despite the indexes selling off and many stocks turning negative for the week, HZNP has held up well.
In fact, it is setting up again in an even tighter pattern.
Traders can buy the next breakout by risking just 3.9% on the trade.
I would consider buying HZNP if it gets above $111.36 – especially if we see a surge in volume.
Traders can work a tight stop beneath Tuesday’s low at $107.00.
For traders that want to play it with options instead, the HZNP November 19th, 2021, $120 strike call options were trading for about $3.00 as of this writing.
You’ll want to use the stock price as your entry and exit trigger.
If it works out, an 8%-10% move up in HZNP should result in roughly a 100% gain on the option.
When markets are shaky, don’t hesitate to take some profits and lock in a gain if you have one
Embrace the Surge,