Along with "KEY LEVELS" - you can look at my proprietary "trend" indicator called "RgMov" at the bottom (the black line) and the way I use it is to look for 2-month (44-days) moves to new highs or new lows to tell me the trend. If RgMov has hit a 2-month high, then I want to buy oversold dips in the 11-day (1/4th the time of the trend). If RgMov has hit a 2-month low, then I want to sell overbought ralies in the 11-day . Currently, has not reached overbought at +100 (currently only still -24), so there is no signal now to short.
However, ABMD has overhead supply coming from 3 key observations that may prevent the stock from reaching overbought. Look at the on the right side of the chart = and look for the areas where very little has traded around the $81 level and the $86 level. Those are low because buyers USED-TO be at that price buying the stock, but now they aren't because the price is below that level. The 3rd key is where ABMD reported last week which is the green triangle has it's midpoint near the $84 level. Look back and see how the stock reacts to this level and see for yourself that sellers are lingering around at this level to unload more shares.
IF NO REACTION to the sell signals I am outlining here then I'll get . If ABMD can get over $96 and sustain that price advance, then AMBD will be accumulated again. As it is now, ABMD just experienced a blow-off rally ahead of and its exciting growth in revenues. Investors have bid up the stock to well over 10 times the current revenues and time will be needed to allow the fundamentals to catch up to the price. That's how markets work, they anticipate news. So, quite often, they overreact or react too soon and do both sometimes. The second case is more likely to be the situation here.
Note the 3-sell signal levels here in AMBD.
8:20AM EST November 4, 2015 79.82 close yesterday