Tuesday, October 21, 2014

Globus Medical Inc (NYSE: GMED)

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. It offers approximately 120 products that address an array of spinal pathologies, anatomies, and surgical approaches. The company’s fusion products are used in cervical, thoracolumbar, sacral, and interbody/corpectomy fusion procedures to treat degenerative, deformity, tumor, and trauma conditions. Its disruptive technology products provide material improvements to fusion procedures, such as minimally invasive surgical techniques, as well as new treatment alternatives, which include motion preservation technologies, such as dynamic stabilization, total disc replacement and interspinous process spacer products, and advanced biomaterials technologies; and interventional pain management solutions, including treatments for vertebral compression fractures.
Take a look at the 1-year chart of Globus (NYSE: GMED) below with added notations:
1-year chart of Globus (NYSE: GMED)
GMED has been trading sideways for the last 2 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. GMED’s rectangle pattern has formed a $20 resistance (red) and a $19 support (green). At some point the stock will have to break one way or the other.

The Tale of the Tape: GMED is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $19, or on a breakout above $20. Short opportunities would be on a rally up to $20, or on a break below $19.
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