Pattern play: Abiomed

Rocket taking off on a bright day
Abiomed (ABMD), a developer of medical devices for cardiovascular conditions, is currently holding around a new 52-week high after breaking out to the upside of an intermediate-term bull flag in mid-December. The RSI is currently in overbought territory at 76. The simple moving averages (SMAs) just turned bullish, as the 20-day SMA just crossed to the upside of the 50-day SMA and the 50-day SMA is above the 200-day SMA. The overbought reading on the RSI could be hinting at a price consolidation. If price can manage to stay above 293.00, then its next targets would be 364.00 and 391.00. On the other hand, if price slips below 293.00, it would be a bearish signal that could send price back to 254.00. If price cannot manage to rebound off of 254.00 then it could be the beginning of a new downtrend.         

Market chart demonstrating Pattern Play Abiomed. Published in December 2020 by FOREX.com

Source: GAIN Capital, TradingView
Related tags: Stocks Technical Analysis

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