Stock Ticker

  • Loading stock data...

Mylan NV (NASDAQ:MYL) – Immediate Support At $66 Keeps The Bulls In Control

Mylan NV (NASDAQ:MYL) opened up with a big gap of over 9% and managed to end the session with almost all the gains protected after registering a new lifetime high at $74.90. The volume surged to 42 million against the daily average of 15 million only. This spurt in both price and volume was inspired by the generic drug development rival Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) offer to buy MYL out.

The offer price was $82 per share or $40 billion in total, half to be paid in cash and the rest to be paid in stocks. The offer price represents a premium of about 11% from the closing price of the last trading session. The benefits of such a combined entity emerges from the possible cost synergies and tax savings of about $2 billion, a possible deleveraging of the two companies’ combined debt and an expansion of their generic drug offerings. Mylan NV (NASDAQ:MYL) is still not very interested about this hostile takeover bid and that makes the entire picture very interesting for the investors. Either the company will fight TEVA and manage to successfully defend itself for a more compelling future, or it will manage to get a much higher bid from the bidder.


The technical picture looks interesting if the long term chart is observed using the Elliott Wave theory. The uptrend is intact and powerful but the EW theory hints that it may be the last part of the long bull market the stock has been enjoying since 2008. The possibility of the stock jumping to $85 levels before any significant correction can’t be ruled out but the investors may prefer to play it safe by booking some profit. Any major correction would first seek $66 first and then $58. Keep an eye on the price action around the support level of $66.

Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.

Recent Stories

SignUp Now For Our Featured Newsletter