(Story Time)
Abiomed stock plummeted in October 2018 from them violating the Medicare Anti-kickback Law. That led to a lawsuit from Medicare for 3.1 Million. Then shortly after they cooked the books and made the stock price look more appealing to investors and traders then it actually was, because they cooked the books they were sued again and the price fell from $462 in October 2018 to $155 October 2019.
(Personal Experience)
I personally work with the devices that Abiomed manufactures. I have seen patients recover from deathly situations that no one thought they would recover from. That said, this company is fundamentally sound because their devices save lives. On the flip side, given that they were sued by Medicare for 3.1 Million and they cooked their books and sued again makes me wonder what they are thinking. I am hesitant to buy this asset because of the uncertainty surrounding the corporate infrastructure and management teams and their tactics that could lead to this stock doing this over and over again from lawsuits.
(Trading Analysis)
Anyways, on to the TA. On the weekly ABMD is in a year long massive bear channel and is looking like it's going to break out despite the inverted hammer reversal pattern at the top of the trend channel forming with one more day left. I believe that the price will now start to move down and sideways out of the channel in between the green 200 SMA and the red 200 EMA and investors will now accumulate this asset for a few months and then onward and upward in a couple of months.
A very Bullish scenario is the inverted hammer is a continuation pattern to the upside because the price is trying to close above the red 200 EMA. If it does that is a good Buy signal and the price could see $250 next week. The weekly RSI is on the border of bullish sitting at 49. They MACD just made a bullish crossover under histogram so that is semi bullish.
Worse case scenario this inverted hammer is a major sale signal for traders and they will dump the price action downward staying in the bear channel .
Next week is very important for ABMD. We shall see what the future holds.
Abiomed stock plummeted in October 2018 from them violating the Medicare Anti-kickback Law. That led to a lawsuit from Medicare for 3.1 Million. Then shortly after they cooked the books and made the stock price look more appealing to investors and traders then it actually was, because they cooked the books they were sued again and the price fell from $462 in October 2018 to $155 October 2019.
(Personal Experience)
I personally work with the devices that Abiomed manufactures. I have seen patients recover from deathly situations that no one thought they would recover from. That said, this company is fundamentally sound because their devices save lives. On the flip side, given that they were sued by Medicare for 3.1 Million and they cooked their books and sued again makes me wonder what they are thinking. I am hesitant to buy this asset because of the uncertainty surrounding the corporate infrastructure and management teams and their tactics that could lead to this stock doing this over and over again from lawsuits.
(Trading Analysis)
Anyways, on to the TA. On the weekly ABMD is in a year long massive bear channel and is looking like it's going to break out despite the inverted hammer reversal pattern at the top of the trend channel forming with one more day left. I believe that the price will now start to move down and sideways out of the channel in between the green 200 SMA and the red 200 EMA and investors will now accumulate this asset for a few months and then onward and upward in a couple of months.
A very Bullish scenario is the inverted hammer is a continuation pattern to the upside because the price is trying to close above the red 200 EMA. If it does that is a good Buy signal and the price could see $250 next week. The weekly RSI is on the border of bullish sitting at 49. They MACD just made a bullish crossover under histogram so that is semi bullish.
Worse case scenario this inverted hammer is a major sale signal for traders and they will dump the price action downward staying in the bear channel .
Next week is very important for ABMD. We shall see what the future holds.