We are removing the DB Precious Metals Fund (DBP) from our long ideas since it has failed to react to oversold conditions below its 200-day moving average.
Earlier this morning, we offered an update on gold prices in our weekly Fairlead Tactics research report. If you are not yet subscribed to our equity research, please see a sample of the report here and let us know if you’re interested in a 30-day free trial.
Biotech stocks show signs of downside exhaustion in absolute and relative terms, so we are adding United Therapeutics (UTHR) as a new long idea:
UTHR looks poised for a rebound within the context of its long-term uptrend, which has been in place since 2020. Last week, UTHR flashed a short-term counter-trend “buy” signal from the DeMARK Indicators near long-term trendline support, which has generated meaningful improvement in short-term momentum.
The bounce off trendline support is impacting our intermediate-term indicators favorably, noting the weekly stochastics have turned higher and the weekly MACD appears to be getting a bullish whipsaw. This suggests that the rebound is likely to have staying power.
A conservative target for UTHR can be gauged by resistance from a 61.8% Fibonacci retracement level, near $253. Strong trendline support is near $220, offering a stop-loss level to manage risk.
United Therapeutics (UTHR, $232.00)
Target: $253
Stop-Loss: $220