European Health Care stocks have seen a strong start to the week and look ready to complete a head-and-shoulders base, according to David Sneddon and his team at Credit Suisse in London.

Looking at a daily Chart of the Euro STOXX Health Care, Sneddon expects the index to break above last year’s September and November highs to mark the completion of a head-and-shoulders base. He thinks this will provide the platform for a more sustained move higher with resistance seen initially at the potential downtrend from February last year at 886, then the July 2020 high at 909, and then the measured objective for the pattern at 936.

See Chart.