Technical Signals Point to a Possible Breakout for EDWARDS LIFESCIENCES CORP.

Our stock screener has spotted EDWARDS LIFESCIENCES CORP (NYSE:EW) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:EW.

Insights from Technical Analysis

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall EW gets a technical rating of 7 out of 10. In the last year, EW was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• In the last month EW has a been trading in the 67.58 - 74.79 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, EW turns out to be only a medium performer in the overall market: it outperformed 53% of all stocks.
• EW is part of the Health Care Equipment & Supplies industry. There are 187 other stocks in this industry, EW did better than 63% of them.
• EW is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so EW is lagging the market.

For an up to date full technical analysis you can check the technical report of EW

How do we evaluate the setup for NYSE:EW?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:EW is 9:

Besides having an excellent technical rating, EW also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 73.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 72.77, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.