Three Falling Peaks on Teva Pharmaceuticals
Teva Pharmaceuticals (NYSE: TEVA) has outperformed the vast majority of stocks over the past year. According to Investor Business Daily’s Relative Strength rating, Teva’s stock price has appreciated more than 94% of the stocks in its database over the past year. Unfortunately for shareholders, there is a pattern on the chart that suggests that the stock is ready to fall sharply in the coming month or so.
The pattern is known as a Three Falling Peaks pattern and it is highlighted with the three blue circles on the chart below. In this case, the three peaks have also formed the upper rail of a trend channel with the lows over the last three months connecting as well.
The stock dropped over 19% in three weeks from the August high to the September low and from the September high to the first October low. If the pattern plays out the same way and drops over 19% again, the stock would be under $19.50 this time around.
The fundamentals for Teva are also a factor as the company has lagged in its earnings and sales growth. The company gets a 22 on IBD’s EPS rating and that means that 78% of the companies in its database have experienced better earnings growth. The SMR rating for Teva is a D and that is below average as well.
Teva reported third-quarter earnings on November 2 and that report showed an earnings decline of 32% over last year and a sales drop of 19% from the same quarter of 2017.
TEVA in upward trend: price rose above 50-day moving average on October 27, 2025
TEVA moved above its 50-day moving average on October 27, 2025 date and that indicates a change from a downward trend to an upward trend. In of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Momentum Indicator moved above the 0 level on November 21, 2025. You may want to consider a long position or call options on TEVA as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TEVA advanced for three days, in of 291 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 231 cases where TEVA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for TEVA moved out of overbought territory on November 17, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for TEVA turned negative on November 21, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEVA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TEVA broke above its upper Bollinger Band on November 05, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TEVA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.920) is normal, around the industry mean (17.176). P/E Ratio (40.607) is within average values for comparable stocks, (72.389). Projected Growth (PEG Ratio) (0.811) is also within normal values, averaging (1.933). TEVA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (1.703) is also within normal values, averaging (56.095).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a manufacturer of generic and proprietary branded pharmaceuticals and active pharmaceutical ingredients
Industry PharmaceuticalsGeneric
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