Teva Pharmaceutical Industries Limited (TEVA​) shares jumped nearly 20% this week after the company appointed Kare Schultz as its new chief executive officer. With falling prices and high debt, the company has been searching for a permanent CEO for more than six months. Mr. Schultz brings over three decades of experience, including his most recent appointment at Denmark's H. Lundbeck A/S (HLUKF), where he successfully executed a turnaround.

Teva also announced that its Phase III clinical trial of fremanezumab for the prevention of migraines demonstrated efficacy for all 25 primary and secondary analyses in both monthly and quarterly dosing regimens. Patients treated with the therapy experienced a statistically significant reduction in the number of migraine days of at least moderate severity. The patients also experienced improved quality of life, better productivity and better health measures. (See also: Teva Stock Jumps After New CEO Is Named.)

Technical chart showing the performance of Teva Pharmaceutical Industries Limited (TEVA​)

From a technical standpoint, the stock broke out from an extended downtrend dating back to late July after it posted weak second quarter financial results. The relative strength index (RSI) moved off of its extreme oversold levels to a neutral reading of 49.28, while the moving average convergence divergence (MACD​) experienced a bullish crossover in mid-August. This could signal an intermediate-term turnaround moving into September.

Traders should watch for a continued rally to the 50-day moving average at $23.98 on the upside or a move back down to retest lower trendline support at $15.50 on the downside. With a neutral RSI reading and the MACD trending higher, the stock is likely to move a bit higher before consolidating near the $20.00 point. Long-term investors will be closely watching the incoming CEO in the meantime. (For more, see: Is Teva Pharmaceutical Stock Finally Bottoming Out?)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

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