Looking for a cure for underperformance? Try Abiomed (ABMD). (September 26, 2016)
ABMD
I want to look at Abiomed ( NASDAQ:ABMD ) today. This is a weekly chart and this, frankly, is setting up really, really nicely. A long base here, going back for years. A secondary base here, it is kind of a little ‘cup and handley’. A double bottom here, again, in what is turning out to be a higher base. Cup and ‘handley’, a move higher, a little pullback, now we are looking for the next leg up. What is important to me, other than just the UPTREND is, these pullbacks, for the 4 weeks, occurred on low volume. Then you get a reversal of these several weeks of trading on HIGHER volume than the prior several weeks, and now we are getting what looks like a continuation pattern. So I LIKE this stock. Now this is the weekly chart.
Now we look at the DAILY chart and you get a better sense, of what is happening in the short-term. A nice uptrend. This was the initial, you could say, like most recent break out would be a break out above this level, 124.72, so we will call it 125.00, which would have been here, but that didn’t really amount to much. You can see it pulled back that day, and then ultimately kind of failed. I wouldn’t say that it failed, I would just say that it needed to do more work. Well nowI think that “more work” is being done. It’s up 2.5 percent today on a day where essentially the bulls were getting stampeded by the bears.
I am looking at Abiomed ( NASDAQ:ABMD ) here. I think this is a stock that you can be buying two ways; you could even take some right now. If it breaks out above here, like to new high, we will say 128.00, then that is an okay time to buy. If it pulls back a bit but then finds support, say at around 123.00 or 124.00, that is a time that you can be buying. We are not predicting here, we are trying to make money, and we are starting with a small position. You start with say a quarter of a position. If you are going to put $10,000.00 to work ultimately, start with 2500.00. Then once the stock moves in your favor then add to it. If it moves against you no problem because you don’t have that big of a position anyway, you are stopped out, you start again. Right now I think Abiomed ( NASDAQ:ABMD ) works. I think you want to be long that stock.
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