Edwards Lifesciences Enters the GapHealthcare has been the weakest sector in the past year, but some traders may expect a comeback in Edwards Lifesciences.
The first pattern on today’s chart is the breakout on Friday after earnings and revenue beat estimates. That rally brought EW into a bearish gap from one year ago.
Second is the May 16 high of $78.28. The heart-valve company spent more than two months mostly below that resistance, but now it’s been breached. Is there a confirmed breakout?
Third, the 50-day and 100-day simple moving averages (SMAs) crossed above the 200-day SMA in April. The 50-day SMA climbed above the 100-day SMA in May. Such an alignment, with the faster SMAs above the slower, may suggest a bullish trend is developing over the longer term.
Finally, the pair of bullish gaps after the previous earnings reports in February and April could reflect improving sentiment toward the company’s fundamentals.
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