Abiomed (ABMD) is coming in for a landing…or is it a touch and go? (December 19, 2017)
ABMD
We are going to look at Abiomed ( NASDAQ: ABMD ) today; this is why: I like the pattern. It really is a pretty solid pattern and I also like the pattern in the fundamentals. This stock is growing; over the last 3 to 5 years average 53 percent in earnings, so fundamentals are really strong. We have got an acceleration in earnings growth versus the same quarter in the prior year, every single quarter. So this is all good in the hood. What you want to do is, get a good entry on this stock. Obviously, looking at the stock after it broke out here wasn’t a wise thing if you are looking to buy it.
By the way, there are a ton of stocks that look like this does right now. Think Freeport-Mc ( NYSE: FCX ), you can look at that chart, you see what I mean. It is not exactly the same but close enough. Anyway, you are looking at a stock, you see it moving higher and you want to buy it. But here are a couple things to think about: First of all 200.00 is an even figure. Stocks are virtually always going to bump their head on even figures; $50.00, $20.00, $100.00, $200.00. They don’t really bump their heads on 193.89, so it is not a good entry here.
Also, you have to look at this and say, “Okay, it is extended. I’ll wait.” So here we go, it is still just kind of drifting along not really giving you a profit if you had bought right at the top. BUT, it also has not pulled back enough to were there is a lot of pain in this chart. Folks that bought right at the top are just saying, “Jeez, I’ve just got to get my money back; I am so mad. My kid is not going to be able to school now. He is going to join Antifa, start wearing my ski mask and throwing rocks. It is just going to be horrible. I have just got to get out of the stock.” You are not going to get too much of that. Instead, everybody is pretty fat and happy here.
What you want to be doing is do this, keep your stop right down there. If you stop gets hit at 185.00 then this support, obviously, isn’t holding. I think you are buying the stock now, it would have been nice to buy it around 190.00 but I will take 193.89. The idea is, that this pullback, maybe it will last a bit longer but ultimately the uptrend is going to reassert itself. That is how I would trade Abiomed ( NASDAQ: ABMD ).
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