There are many stories to tell about the chart of Abiomed (ABMD).
I have shown how the Earnings Level is key support especially in the corrections in October and February. The last three earnings 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 volume 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 volume seems to mirror the high volume decline from late October when earnings 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.
Tim
10:41AM EST 3/31/2016
Kommentar
⋅
Working very well so far.
Kommentar
⋅
ABMD is accumulating for even bigger advances from current levels. It appears that buyers are stepping up and absorbing all of the available supply of shares. It wont be too much longer until the buyers run out of stock available to buy, then the price starts getting marked up to find new supply.
Keep a close eye on Abiomed (ABMD) 6/22/2016 11:39PM EST
Kommentar
⋅
Another strong earnings report and ABMD continues higher. The stock is strongly accumulated and in position for a long and strong advance. Drops back to the accumulation levels will be used to buy aggressively. Always assume it can fall back into accumulation levels and don't over-leverage so you are ready to add on drops. This is a nice winner so far and looks like plenty more upside potential.
Kommentare
A-shot
⋅
deserves more likes and comments
DrFrog
⋅
Which indicator do I need to add to get the volume/price levels on the right side as you have them? I've been trying to get that on TradingView for months now...
Thanks in advanced!
IvanLabrie
⋅
Terrific.
IvanLabrie
⋅
Looks very good so far. Might take a position considering today's action.