Healthcare names have been in the spotlight recently as biotech names have been hammered. Perennial favorites like CELG and GILD are now 29 and 30% off recent 52 week highs. Remember that last year was the third consecutive time the sector was the second best performer. Is the wobbly group going to make a strong push throughout the rest of ’16? So far it is the second worst performer through January down a little more than 8%. The medical equipment players are reporting earnings (SYK rose 5.6%, in the best weekly volume since week ending 8/12/11, last week after releasing numbers). This morning it is ABMD’s turn. In our Tuesday 1/26 Game Plan we looked at ABMD. Below is precisely how it was looked at in our daily report.
Stocks that can be bought as they take out symmetrical triangle patterns are ABMD. ABMD is another healthcare play that is down 1% YTD (very respectable) and higher by 126% over the last one year period. The stock last reported earnings on 10/29 (it REPORTS 2/4 before the open) and slumped 28.6% on 10/29 but did find support at the round 70 number. Its prior 3 reactions were all very well received up 14.7, 15.9 and 29.3% on 8/4, 5/5 and 1/28. Last week ABMD lost .8% but CLOSED well into the upper half of its weekly range and 10% off intraweek lows. The stock has now formed a symmetrical triangle pattern whose upper line aligns roughly with the round 90 number. Enter with a buy stop above 90.75.