Don't Ignore This Chart!

Healthcare Stock Pre-Reports Strong Results, Breaks Out

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Stryker Corporation (SYK), a medical technology company, preliminarily reported their latest quarterly results and indicated they'd be ahead of expectations.  That announcement resulted in a gap up and breakout above previous price resistance on Wednesday.  Over the past couple days, we've seen a bit of selling that could provide a short-term buying opportunity as both price and gap support have been tested.  Check it out:

I'd look for those two support levels to hold, but the rising 20 day EMA can't be ruled out for a test as well.  Given the recent high above 127, however, the recently selling has significantly improved the reward to risk of entry between the current price and that rising 20 day EMA, currently at 119.43.

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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