Teva Pharmaceutical Industries (TEVA) received FDA approval on October 9 for WELTRUZA, the first once-monthly subcutaneous injectable formulation of olanzapine for adults with schizophrenia. Developed in partnership with Medincell, the treatment eliminates the need for loading doses, oral supplementation, and post-injection monitoring, offering a potentially more convenient alternative to daily medication. Teva expects to launch WELTRUZA in the United States in the coming weeks. The approval marks another milestone in the company’s Pivot to Growth strategy, strengthening its portfolio of innovative neuroscience treatments and creating an additional opportunity for future revenue growth.

These approvals set up some amazing trades. Let’s cover one point of caution and take a look at the chart.

There is a specific pattern that often shows up just before a price surge on a chart. Here is the info on how to spot it.

TEVA continues to display a strong bullish trend, trading above its 8-day, 21-day, and 55-day exponential moving averages, which remain properly aligned. The ADX reading of 32.32 confirms trend strength, while the positive directional indicator at 29.08 remains well above the negative indicator at 13.21, reinforcing bullish momentum. The PPO has turned higher and remains above its signal line, suggesting renewed upward momentum, while the RSI at 65.64 indicates strength without reaching overbought territory. With shares closing near $41.17, a sustained move above the recent $41.90 resistance area could open the door to additional upside. The combination of favorable technical indicators and the recent FDA approval supports a bullish outlook, although the stock’s recent advance leaves some risk of a short-term pullback.

Wishing you the best,

Wendy