Cochlear breakout likely

Healthcare names have been on a tear over the past few months and the trend just seems to be continuing.

Source: Bloomberg

While CSL Ltd has been a standout, Cochlear Ltd (COH) has also been making some progress in the background. A strong run from December saw COH rise from about $70 to a high of $93.22 before a partial pullback over the past couple of weeks.

This pullback has turned out to be quite healthy and the price action is gathering momentum yet again. In fact, I feel a break above the February 20 record high will be a good opportunity for fresh longs.

Traders could look to buy COH on a break above $93.22 with stops placed below $90. Ideally around $87.50 is a good level to have stops given it sits below the recent consolidation zone and below an uptrend line that has been in place since December.

Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.