Edwards LifeScience (EW) had a big move this week - having been inside a trading range for most of 2018, EW is now testing the top of the consolidation. I have omitted the few days it experienced above the range as the stock gapped up, went on a euphoric surge and then gapped lower, quickly putting it back inside the range. The stock was ultimately up 20% last year, even though it was near the bottom of the range at the start of 2019. The SCTR shows the stock is very strong relative to other large-cap stocks, having spent most of 2018 above 75. Tuesday's high volume was almost 40% above average on the $12 move. The PPO is moving up above zero, which is also a good place to initiate a move from.
More importantly, EW has been going higher for years. This stock has been a stellar performer and looks set to make another run. A stop below the October/December lows would give the stock wiggle room for longer-term investors. If the PPO breaks above the trend line, that suggests another leg higher for the stock.
A lot of charts are changing this week. If you are looking for some positive areas of the market to investigate, I would strongly encourage you to look at my Weekend Wrap!
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Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies
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The Canadian Technician