Danaher DHR at Gap Support Cepheid FDA Approved Coronavirus TestCepheid created a diagnostic test that could detect the novel coronavirus in approximately 45 minutes. This test was just approved by the FDA today. Also, Cepheid was just bought out by Danaher (DHR). This is why I'm doing an analysis for Danaher.
Looking at the DHR stock, we see that it just reached the top of the gap that appeared in February 2019.
If it goes below this gap, then we may see a gap fill which is why it's important to use a tight stop. However, I believe it is more likely, especially given the bullish catalyst, that we see the stock rise.
My first target is right below the trapped longs. Anyone who bought in the red rectangle area, is praying for an exit.
The more aggressive target (target 2) is a return to the top of the trend line.
I realize this analysis is simple, but from my experience, it doesn't need to be more complicated. Check my most recent idea where I predicted the top of SPY to the dollar using a single trend line.
Happy trading!
