Edwards Picks Up its Heartbeat
- Posted by Greg Harmon
- on July 25th, 2012
Edwards Lifesciences, $EW, reported earnings Tuesday after the bell and the reaction Wednesday was very positive. In fact it created a bullish Kicker candle pattern (in the blue oval on the daily chart), that bodes for more upside. This could set off a string of events that takes the stock up near $115. Let me explain.
Edwards Lifesciences, $EW, Daily
Prior to earnings Edwards had been building a bull flag on that daily chart for nearly 6 weeks. It had worked off a technically overbought condition and the Bollinger bands had squeezed. It was ready for a move. The earnings catalyst gave it a push to the upside and a breakout over the flag. The Measured Move higher takes it to 115 looking at the similar move from the May to June base up to the flag. The volume surge also helps the bullish case. If you move out to the weekly chart, there is a bullish Rising Three Methods pattern forming and within it are the roots of the breakout higher. Bullish on this timeframe as well. And if this was not enough to get you into this stock the 3-box reversal Point and Figure Chart carries a bullish price objective of 123.00. Trade the breakout against a stop near 105 or use the the September 105/115 Call Spread which was offered at $3.70 late Wednesday as two possible ways to play it.
Edwards Lifesciences, $EW, Weekly
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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