GET DAILY SIGNALSThree 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.
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Aroon Indicator for TEVA shows an upward move is likely
TEVA's Aroon Indicator triggered a bullish signal on October 20, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 282 similar instances where the Aroon Indicator showed a similar pattern. In 227 of the 282 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +5.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEVA advanced for three days, in 227 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TEVA as a result. In 45 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
The Moving Average Convergence Divergence Histogram (MACD) for TEVA turned negative on October 21, 2026. 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 40 similar instances when the indicator turned negative. In 25 of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
TEVA broke above its upper Bollinger Band on October 09, 2026. 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.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 7 (best 1 - 100 worst), pointing to outstanding 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 Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 37 (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 SMR rating for this company is 72 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable 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.
The Tickeron Valuation Rating of 77 (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 (6.123) is normal, around the industry mean (8.029). P/E Ratio (65.645) is within average values for comparable stocks, (-0.853). Projected Growth (PEG Ratio) (0.980) is also within normal values, averaging (2.152). Dividend Yield (0.008) settles around the average of (0.047) among similar stocks. P/S Ratio (2.589) is also within normal values, averaging (178.797).
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General Information
a manufacturer of generic and proprietary branded pharmaceuticals and active pharmaceutical ingredients
Industry PharmaceuticalsGeneric
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