Active Stocks: Mylan N.V [NASDAQ: MYL] made significant gains in Monday trading session, to close the day with gains of 12.57%. This momentum is largely driven by some bullish news that came out in Monday’s session. One of the big news around this stock was with regards to its Q2 earnings. In Q2, the company reported earnings of about $1.03 per share to beat analyst expectations of 95 cents a share. The company’s Q2 revenues also beat analyst expectations, after they came out at roughly $2.85 billion, against analyst expectations of $2.82 billion.
However, the biggest news for Mylan on Monday was the announcement that it had reached a merger agreement with Upjohn. Upjohn Is Pfizer’s business for generics and off-patent products. The merger will create a new pharmaceutical company in which, Pfizer shareholders will own roughly 57%, while Mylan shareholders will hold about 43%. This is a big deal for Mylan because the new entity is expected to have a diversified product portfolio, and generate around $20 billion in the year 2020. On top of that, the new entity will be led by Mylan’s chairman, Robert Coury, which is a plus for MYL shareholders.
From a look at the price action, Mylan is currently trading sideways or down a little in pre-market, but has some support at $20.67 and $20.70. It bounced off these price levels twice in Monday’s session. If it holds above it when markets open, it is likely to trade in bullish territory in the day. If it opens below it then Mylan could trade in bearish territory for the day. For bullish momentum to be confirmed, MYL needs to push above Monday’s high of $21.88. It’s a price level that could offer some significant resistance in the day. A push past this level would be a positive indicator of a bullish breakout, and a possible continuation of the bull trend.