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:
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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