Stock Analysis: Best Stocks to Buy Tomorrow for Short Term – Jazz Pharmaceuticals Plc (JAZZ)
For traders seeking best stocks to buy tomorrow for short term, Jazz Pharmaceuticals Plc (JAZZ) presents a promising opportunity. On Tuesday, 16 October 2024, Jazz Pharmaceuticals closed at $117.28, showing potential for a strong short-term price movement. Let’s explore the technical analysis and why Jazz Pharmaceuticals stands out as an excellent short-term trading opportunity.
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1. Overview of Jazz Pharmaceuticals Plc (JAZZ)
Jazz Pharmaceuticals is a global biopharmaceutical company focused on developing treatments for various conditions, including sleep disorders, oncology, and pain management. Despite its strong fundamentals, the stock has been trading in a bearish trend but is now showing signs of a potential reversal. This makes it one of the best stocks to buy tomorrow for short term gains.
2. Closing Price: 16 October 2024
On 16 October 2024, Jazz Pharmaceuticals closed at $117.28. The stock is testing key support zones and is positioned for a potential bounce, making it a great candidate for short-term traders looking to capitalize on a bullish move.
3. Monthly Time Frame Analysis
When analyzing the monthly time frame, Jazz Pharmaceuticals has been trading in a bearish trend, consistently forming lower lows (LL) and lower highs (LH). However, the stock tested a strong demand zone from 2013 around the $87 price level during March 2020, which has acted as solid support.
The stock once again tested this demand zone in July 2024, and it is currently attempting a bounce towards the upside. This demand zone has proven to be a significant support level, increasing the likelihood of a short-term bullish move. As the stock bounces from this zone, it presents one of the best stocks to buy tomorrow for short term trading.
4. Unmitigated Supply Zones: Upside Targets
Looking ahead, Jazz Pharmaceuticals has two key unmitigated supply zones to watch for on the upside:
- First supply zone at $130
- Second supply zone at $140
These supply zones represent areas of potential resistance, but they also offer realistic targets for short-term traders. Additionally, the monthly 50 EMA (Exponential Moving Average) is aligning with these zones, acting as further resistance. Traders should be cautious near these levels, but the stock’s current setup suggests that these zones could be tested in the near future.
5. Weekly Time Frame: Bullish Indicators
On the weekly time frame, there are several bullish indicators pointing to a potential upward move. The stock has experienced ultra-high volume at the demand zone, indicating strong buying interest from institutional investors and traders. High volume at key support levels often precedes strong price movements, reinforcing Jazz Pharmaceuticals as one of the best stocks to buy tomorrow for short term.
Additionally, the RSI (Relative Strength Index) on the weekly chart shows a bullish divergence, suggesting that while the price has been declining, momentum is shifting towards a potential reversal. This combination of high volume and bullish RSI divergence makes the stock an attractive option for short-term traders.
6. Critical Support Level: $98
While Jazz Pharmaceuticals is showing strong bullish signals, it’s important to monitor the $98 price level. If the stock breaks and closes below $98, the current bullish setup would be invalidated, and further downside could be expected. However, as long as the stock remains above this critical level, the bullish outlook remains intact, offering a strong case for short-term gains.
Swing Trade Idea for Jazz Pharmaceuticals Plc (JAZZ)
For swing traders, Jazz Pharmaceuticals presents a favorable setup with a well-defined risk-to-reward ratio. Here’s a swing trade idea based on the current technical analysis:
- Buy Entry Range: $113 – $103
- Stop Loss: $98.40
- Target 1: $125
- Target 2: $130
This swing trade setup offers a solid risk-to-reward ratio, with the stop-loss placed just below the $98 support level to manage risk. The first target of $125 and the second target of $130 are realistic based on historical price action and resistance levels.
7. Why Jazz Pharmaceuticals is Among the Best Stocks to Buy Tomorrow for Short Term
Jazz Pharmaceuticals stands out as one of the best stocks to buy tomorrow for short term for several reasons:
- Strong Demand Zone Support: The stock is currently bouncing off a key demand zone, which has acted as strong support in the past.
- Bullish Indicators: High volume at the demand zone and bullish divergence on the RSI suggest that a bullish reversal is likely.
- Upside Targets: With potential resistance at $130 and $140, there is significant upside potential for short-term traders.
These factors make Jazz Pharmaceuticals a strong candidate for short-term gains, particularly for swing traders looking for an opportunity to profit from a bounce off key support.
8. Risk Management and Strategy
While Jazz Pharmaceuticals presents a strong bullish setup, risk management is crucial. Swing traders should adhere to the stop-loss at $98.40 to protect against potential downside if the stock fails to hold above the critical $98 level.
For those aiming to trade the stock for short-term gains, it’s important to monitor the stock’s movement closely, especially as it approaches the $130 and $140 supply zones, where resistance may come into play.
9. Short-Term Investment Outlook
Jazz Pharmaceuticals is well-positioned for a short-term bullish move, supported by key technical indicators and strong demand at the current price levels. The stock’s potential to test the $130 and $140 supply zones offers excellent profit potential for short-term traders. As long as the stock holds above the $98 support level, the bullish outlook remains intact, making it one of the best stocks to buy tomorrow for short term.
10. Conclusion: Jazz Pharmaceuticals is a Strong Buy for Short-Term Traders
Jazz Pharmaceuticals Plc (JAZZ) is one of the best stocks to buy tomorrow for short term due to its strong demand zone support, bullish divergence on the RSI, and high volume at key levels. With upside targets of $125 and $130, the stock presents a promising opportunity for short-term traders.
As long as the stock holds above the $98 level, the bullish outlook remains valid, and Jazz Pharmaceuticals could continue to rise in the coming weeks. For those seeking quick gains with well-defined risk, Jazz Pharmaceuticals is a top contender among the best stocks to buy tomorrow for short term.
FAQs
1. Is Jazz Pharmaceuticals a good stock to buy for short-term trading?
Yes, Jazz Pharmaceuticals is considered one of the best stocks to buy tomorrow for short term due to its strong demand zone support, bullish technical indicators, and potential for a price bounce.
2. What is the closing price of Jazz Pharmaceuticals on 16 October 2024?
On 16 October 2024, Jazz Pharmaceuticals closed at $117.28.
3. What are the upside targets for Jazz Pharmaceuticals?
The upside targets for Jazz Pharmaceuticals are $125 and $130, with potential resistance at the $130 supply zone.
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Note: Always remember: risk no more than 1% per trade.” Keep trailing your stop loss to secure bigger profits.
Please note this is only an opinion and not financial advice.
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