Stocks To Watch: Endo International Plc [NASDAQ: ENDP] has made huge gains since the last time I covered it on 9th September 2019. In the article titled, “Active Stocks: Endo International (ENDP) charges higher but can it continue?” I noted that if it held the $3 range support level, it would likely push higher. On that day ENDP opened at $3.43, hit a low of $2.98 and has since risen to hit a high of $4.46. The move just from $3.43 to $4.46 was a 30% gain potential. ENDP has since retraced and done what I call, “a healthy chart reset”, largely due to profit-taking after such a large move. However, bullish momentum seems to be taking over again. The company is still riding on the momentum that came from its breakthrough in the treatment of buttocks cellulite.
On top of that, the company is taking measures to protect itself from risks that come with opioid litigation’s. In an email statement, the company has stated that it continues to explore different global settlement mechanisms for pending opioid litigation. Other Biopharma companies, such as Johnson and Johnson, have also announced that they are taking similar steps. This could reduce the risks that investors have pegged on these stocks and lead to a price rally.
Looking at the daily chart above, ENDP is forming a bullish continuation pattern after its recent correction. If it pushes through its recent high of $4.46, then the bull trend could be confirmed, and it could test new highs in the medium term. The recent up to down volume remains high and as of yesterday ENDP traded 15.77 million shares. In the day, it had some volatility, oscillating between a low of $3.20 and a high of $3.82 before closing the day at $3.34.
Today, the key factor that could drive market sentiment is weak U.S manufacturing data, which underscores the impact of the trade war with China on U.S manufacturing. As of now the DOW is in the red pre-market.
About Endo International PLC
Endo International PLC is a manufacturer and distributor of branded and generic pharmaceuticals in the U.S. The company was started in 1920 has its headquarters in Dublin, Ireland.