ABIOMED (ABMD) has fallen much of the past three weeks after surging on better-than-expected quarterly earnings results on May 5th. ABMD posted revenues of 67.56 million in its latest quarter, easily surpassing Wall Street forecasts of 62.33 million. In addition, ABMD's EPS trounced estimates, .28 vs. .12. Prior to the positive earnings surprise, ABMD received FDA approval for its heart pump during the latter part of March, triggering another surge and gap higher. Technically, the recent selling not only filled the gap from earnings, but now ABMD has filled that March gap as well. With its RSI close to 40, ABMD could be poised to resume its uptrend from the current level. ABMD is quite volatile, however, and should only be considered by those with higher risk tolerance levels. Check out the chart:
Happy trading!
Tom
