TARO - Taro Pharmaceutical Industries $50.65 -0.14 (+3.90)

Thursday's Comment:

Prospects for Taro have become noticeably brighter, as witnessed by its recent stock movement. Over the past year, Taro received seven FDA approvals and reported annual revenues that exceed the $100 million mark for the first time ever. This bit of good news has help Taro nearly double its share price over the past three months. In Thursday trading, shares of TARO did give back a little ground from Wednesday's sharp rally and closed the session at $50.65, down 14 cents. What was encouraging, though, was the lightness of volume. The stock normally logs around 146,500 shares based on a three-month average, but Thursday's decline came on volume of just 59,700 shares. This is a clear indication of a lack of sellers at present levels. At this point, we feel there's a good chance the stock will continue to exhibit more upside momentum. To that end, we'll look for initial resistance to come at the $52.10 mark (all-time high). A potentially harder barrier will follow at $55. Support will come at the half-century mark, with an additional base at the April 10 intra-day low of $48.24, bolstered by the 10-dma of $47.80. Traders could consider entry points when TARO shares bounce off support or break above $52.10 on volume of at least 70,000 shares traded by noon. We'll continue to hold a firm stop at $44.

Picked on April 10th@ $49.45 Change since picked +1.20 Stop Loss @ $44.00

Play of the Day Index