I have shown how the Level is key support especially in the corrections in October and February. The last three reports have been around the same price in ABMD shares: 85, 84, 87.
Last week the price range expanded to the upside as it moved away from the 87.50 level and then this week so far the market is holding above the level where sellers capped the advance to the 88 level for the week. Another way to say that is that sellers were strong enough to keep the low of the week at 88.22 for the whole week but so far this week the low is 89.74, which is another way of saying that the sellers are now weaker and buyers are stepping up to buy shares.
Take note of the "trend indicator" known as RgMov (RangeMovement) - when that indicator hits a 44-bar high, then it is in an uptrend until it falls to a 44-bar low. The trend has reversed several times in the past 7 months but is in an uptrend now.
Note also that the that came into the stock might be a sign of a new investor stepping up to the plate to purchase a big block of stock. The seems to mirror the high decline from late October when were released and the stock fell from $98+ to under $70.
Fundamentally: It is a good idea to review the company website and understand what the company is doing. You can clearly see the investors are skittish and the stock moves quickly both up and down. So, technically, anything is possible. By analyzing patterns of buying and selling, we certainly hope that we can reduce the risk and get "in" once a stock is accumulated and "get out" once it is distributed.
Upside to $97 in the next two weeks, as a result of the weekly range expansion rally last week from 87.53 to 93.79, closing at 90.60. (We can project a move from 90.60 to 6.26 points to 96.86). The way to trade this is to buy dips towards 90 with an 86.5 stop and a 97 target. Longer term this could be a setup for a new uptrend to a new high over the $110 level set back in August last year.
Feel free to follow and ask questions to remind me to update this chart.
10:41AM EST 3/31/2016
Keep a close eye on Abiomed (ABMD) 6/22/2016 11:39PM EST