Wright Medical Group Inc (NASDAQ: WMGI)

Wright Medical Group, Inc., a specialty orthopaedic company, provides extremity and biologic solutions that enable clinicians to alleviate pain and restore their patients lifestyles. The company offers products that are used primarily in foot and ankle repair, upper extremity products, and biologics products. Its extremity hardware products comprise implants and other devices to replace or reconstruct injured or diseased joints and bones of the foot, ankle, hand, wrist, fingers, toes, elbow, and shoulder. The company also provides biologic products, which are used to replace damaged or disease bone, stimulate bone growth, and provide other biological solutions for surgeons and their patients, as well as offers a bone graft product incorporating antibiotic delivery. Its biological products focus on supporting biological musculoskeletal repair by utilizing synthetic and human tissue-based materials.
Take a look at the 1-year chart of Wright (Nasdaq: WMGI) below with my added notations:

Over the last 4 months the WMGI seems to have formed an inverse head and shoulders pattern (blue). I have noted the head (H) and the shoulders (s) to make the pattern more visible. The stock’s neckline resistance is at the $32.50 level (red). WMGI would confirm its H&S by breaking through the neckline.
Lastly, keep in mind that simple is usually better. Had I never pointed out this inverse H&S pattern, one would still think this stock was moving higher simply if it broke through the $32.50 resistance level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break above the key $32.50 level.

The Tale of the Tape: WMGI has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $32.50 level, preferably on an increase in volume.
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