Don't Ignore This Chart!

ABIOMED Testing Gap Support

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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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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