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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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