As technical analysts, we believe that most of a stock portfolio should be comprised of those in long-term uptrends. At the same time, we encourage investors to complement that exposure with stocks undergoing long-term turnarounds, or basing phases, for more opportunistic exposure. When scanning the S & P 500 for long-term bases, drugmaker Viatris (VTRS) caught our eye. On its monthly chart, a rounded bottom is visually evident to suggest a basing phase is underway. The monthly MACD has shown improvement since the middle of 2020, even as price has declined, creating a bullish long-term momentum divergence. Additionally, the slope of the 12-month moving average has flattened to suggest long-term downside momentum has alleviated. In late 2023, VTRS reversed its secular downtrend with a breakout above the weekly cloud model, affirming the stock’s long-term turnaround. The breakout was associated with a long-term oversold upturn on the monthly chart, further suggesting a major low had been established. The bullish reversal saw upside follow-through, then gave way to a four-month correction that recently matured. Last week, VTRS saw its weekly MACD shift positive in a bullish intermediate-term development. A higher low has been established relative to the 2023 low, which is a promising development especially since the weekly cloud acted as support. Referencing the corrective low from June, we can derive an intermediate-term measured move price projection of approximately $14.80 for VTRS. Cloud-based support, which rises to roughly $11.20 in mid-August, can be used as a stop-loss level to manage risk. âKatie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . 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