Pattern play: Abiomed

Price is holding near a new 52-week high after an upside breakout from a bull flag.

New Highs 4

Abiomed (ABMD), a developer of medical devices for cardiovascular conditions, is currently holding around a new 52-week high after breaking out to the upside of an intermediate-term bull flag in mid-December. The RSI is currently in overbought territory at 76. The simple moving averages (SMAs) just turned bullish, as the 20-day SMA just crossed to the upside of the 50-day SMA and the 50-day SMA is above the 200-day SMA. The overbought reading on the RSI could be hinting at a price consolidation. If price can manage to stay above 293.00, then its next targets would be 364.00 and 391.00. On the other hand, if price slips below 293.00, it would be a bearish signal that could send price back to 254.00. If price cannot manage to rebound off of 254.00 then it could be the beginning of a new downtrend.         

Source: GAIN Capital, TradingView

More from Technical Analysis

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.