Some charts don’t whisper — they declare themselves. That’s exactly what we’re seeing right now with this major player in the life-sciences and medical-technology space. After months of steady acceleration, the stock has powered into a clean, unmistakable uptrend that’s turning heads across the market. Part of the excitement stems from the renewed rotation into high-quality healthcare names as investors search for durability, cash-flow strength, and valuations that actually make sense in this environment. But there’s more fueling the move: demand in advanced research tools is re-accelerating, key end-markets are stabilizing, and recent commentary across the sector suggests that capital spending in biotech and pharma is beginning to thaw. With momentum this strong and a trend this well-defined, this breakout deserves a spot on every trader’s radar— it does not look finished.

The name behind this surge is Thermo Fisher Scientific (TMO) — a heavyweight in the life-sciences and diagnostics arena that’s been steadily reclaiming leadership status on the charts. What pushed it onto my radar today is a technical signal I consider one of the cleanest, most reliable trend confirmations in my playbook: the 21-day EMA has crossed above the 63-day EMA, a move that often precedes sustained momentum expansions in strong uptrends. That crossover didn’t happen in a vacuum — it arrived as TMO continues printing a textbook sequence of higher highs and higher lows, reinforcing the durability of its breakout. This kind of alignment between short-term acceleration and medium-term trend confirmation is exactly what defines a high-conviction bullish setup.

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For this powerful breakout in TMO, I’m focusing on an ITM call debit spread, which fits the structure of stock’s trend perfectly. The momentum is powerful and the medium-term setup looks primed for continuation — but given the stock’s strong run these past few months, I want a bit of built-in cushion in case we see some cooling or short-term profit taking. Thankfully, TMO’s options are still carrying rich premiums, especially on the call side, and that extra time value works directly in our favor when structuring spreads. At current prices, one of the ITM call spreads on the board is offering a potential 69.5% return even if TMO finishes the cycle flat… or down as much as 7.5%. A trade that can deliver nearly 70% while the stock rises, drifts sideways, or slips modestly is the kind of probability-enhanced setup I love to seek out.

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Wishing You the Best in Investing Success,

Blane Markham

Chief Trading Strategist

Author, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

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