European Healthcare Stoxx 600: one of the weakest sectors. 

The daily bar chart highlights the bearish trend of Healthcare Sector in the STOXX600 the major european index , also including British and Swiss shares.

InchCapital Platform – Data Source: Fida.

 

The strong buy-list screening of European stocks on last September seven, highlighted seven new signals, of which three relating to Healthcare and two of the Chemicals sector. We analyzed 19 European sectors of the Stoxx 600 index in order to deepen the Healthcare trend and perspective, usually favored in corrective or defensive phases in stock market. After recording an academic retracement of the previous bullish period November 2016 – Maj 2017, a bullish reversal pattern has closed recently, with a good weekly confirm, that will be confuted only by a weekly close below 723.00

 

The picture shows two sinusoidal charts daily on the left and weekly on the right to highlight the index position respected its cyclical phases.

InchCapital Platform – Trend Stage daily and weekly

 

This context has moved in an ideal cyclical, medium-& long-term turning point that gives us hope for the coming weeks, as well as needs to be emphasized the increasing comparative strength vs. STOXX 600 index – read more: STOXX 600 HEALTHCARE. It is thus possible to activate an interesting sector trnover that can be exploited through the purchase of future, ETF or stocks.

Among these, we prefer stocks directly because we consider the ETF analyzed with the platform Inch all at high risk in terms of liquidity. This approach from first of all from stocks to the industry is our most effective method. Stock picking does not depend on sectoral trends because the underlying reasons for a stock rise may be different, crosscutting, and not related to the specific sector.

For example, the recent impressive rise of airlines around the globe has not been followed by its travel sectors and two of the three European Healthcare stocks we are proposing, have been in a bullish trends for months with any significant retracements.

This applies in particular to Straumann e GN Store Nord: read more: Straumann isin code CH0012280076 – GN Store isin code DK0010272632 and as for Elekta B, there are interesting perspectives especially above 85.30 level, read more: ELEKTA B isin code SE0000163628