Pattern play: Edwards Lifesciences

Edwards Lifesciences (EW), a designer and manufacturer of medical devices for heart disease, broke out to the upside of a descending broadening wedge pattern on December 22nd, after price held just below the upper trendline for a few weeks. The RSI is over 60 and appears to have broken out to the upside of a sideways channel. The simple moving averages (SMAs) are arranged in a bullish manner, as the 20-day SMA is above the 50-day SMA and the 50-day SMA is above the 200-day SMA. The next Fibonacci resistance levels are at 97.50 and 102.75. If price slips then traders should look to the upper trendline for support, as it recently acted as a strong resistance level. If price drops below the upper trendline of the pattern then 83.00 and 78.50 would be the immediate support levels.  

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

Source: GAIN Capital, TradingView

Related tags: Stocks Technical Analysis

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