Cochlear breakout likely

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

Healthcare
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.

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