Healthcare continues to shine and fighting trends can be a painful and unprofitable adventure. Amazingly the sector has the best one, three and five year period performance higher 29, 30 and 24% respectively. Even through the recent volatility the group has held its own impressively. Of course the overall group is very diverse with small cap biotech speculative plays to established pharma dividend players. Lets take a look at three leading names from this diverse group that we think still have legs.
ABMD and Q were looked at both in our Friday 9/4 Game Plan. ABMD rose almost 4% Tuesday taking out both the par number and the symmetrical triangle. We would now hold onto that position and look for a further entry above the current 110.78 cup base pivot point.
Stocks that can be bought as they take out symmetrical triangles are ABMD. ABMD is a healthcare play performing brilliantly up 147% YTD and 261% over the last one year period. It has produced 4 positive earnings reactions, all up handsomely by 14.7, 15.9, 29.3 and 23.7% on 8/4, 5/5, 1/28 and 10/30. The stock last took out a cup with handle pivot point of 76.70 on 7/30 and has powered on. It also jumped 18% on 3/24 following an FDA approval. Last Monday it acted admirably CLOSING at highs for the session and 10% off intraday lows. The round par figure was precise resistance on both 8/27 and 8/31, but look to enter with a buy stop above symmetrical triangle at 98.30. Add to with CLOSE above 100.