An Apple A Day Can't Keep Strong Gains Away From These 5 Hot Medical Stocks

An apple a day may keep the doctor away, as the old saying goes, but Apple’s (AAPL) strong gains on a near-daily basis have not kept away buyable stocks from the health care sector. The medical sector has been the source of strong performances as of late, and five medical stocks to watch are trading above buy points: Boston Scientific (BSX), Vertex Pharmaceuticals (VRTX), Align Technology (ALGN), Glaukos (GKOS) and Insulet (PODD).

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Medical Sector

The medical sector is one of the leading groups in 2018, cumulatively gaining nearly 30% so far this year. That’s well above the collective 5% gain from the telecom sector, to which tech giant Apple belongs. While many tech stocks remain strong, investors should keep in mind that there are other groups presenting compelling buy points and logging notable gains.

Boston Scientific Stock

Boston Scientific stock is trading 1% above a cup-with-handle buy point of 35.36 after clearing that level last Tuesday. The cardiovascular medical device maker’s pattern is somewhat awkwardly shaped, and volume on the breakout has been light. Heavy volume when a stock breaks out indicates institutional support. Boston Scientific stock is some 5% below an alternate entry point of 37.40.

Vertex Stock

Vertex stock cleared a 183.49 buy point from a flat base in a base-on-base pattern last Wednesday. Shares are still in buy range but volume for Vertex stock is light too. And the relative strength line is below highs despite the breakout. The RS line at a new high can be a bullish indicator as a stock enters buy range since it measures price performance vs. the S&P 500. Vertex develops therapies for the treatment of cystic fibrosis.

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Align Stock

Align Technology, which makes Invisalign teeth straighteners, is holding just above buy range from a 385.10 entry. Shares cleared the buy point in slightly above-average volume, and the RS line for Align stock has been trending higher. But since Align stock has already been on a big run, the base is a late-stage base. Late-stage bases are more risky as they have a higher likelihood of failure.

Glaukos Stock

Glaukos stock skyrocketed 40% in massive volume on Wednesday after Novartis (NVS)-owned Alcon removed its rival eye-stent product from the market. The buy point here is as close to the opening price as possible on the gap-up, which in this case is just above the 62 mark. Glaukos stock is now extended from that entry. But when a stock has a breakaway gap, investors should pay attention as these moves could be the precursor to even more gains.

Insulet Stock

Insulet stock rose 1.7% Friday to clear a cup buy point of 102.99. But volume was lighter than average. On a weekly chart, the relative strength line is at new high ground, which is a positive sign. But with the positive technical action, investors should keep in mind that the insulin device maker is not yet profitable.

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The post An Apple A Day Can't Keep Strong Gains Away From These 5 Hot Medical Stocks appeared first on Investor's Business Daily.

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