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NFTRH+; Upcoming ‘Buy Op’ on a Medical Device Company

The company is CryoLife (CRY), a stock that provided some nice profits last year before turning bearish this year.  You can review the website if interested.  It is an innovative company with a valuation that indicates Wall Street’s former excitement.  As is typical, they piled in too late and too hard.  Now the fallout, as the company could not keep up with expectations.

On the daily view we see the stock plummeting toward the 2016 gap up last July.  That was when the bullish excitement began.  That gap looks like it may fill off of this bearish pattern.

cry

The weekly shows the long-term lateral support that we had noted about a year ago when the stock was just making its breakout above the 11.50 to 12 area.  The pattern also measures to around 12 (20-16=4, which is subtracted from the neckline area at 16).  That is a buy on this stock, unless some sort of fundamentals crop up that kills the thing.  All things being equal, I’ll probably be buying this at or near 12.  Also of note, the company will release earnings on April 26 after the market close.

cry

Also, as we noted last year CRY was a leader to the ultimately bullish Med. Device sector.  Now it is heading toward support vs. the IHI ETF as well, indicating that its pumpy over valuation is being addressed.

cry-ihi

Buy Target:  11.50 to 12.50.

Sell Target:  Undetermined as yet.

Stop Loss:  Below 11 to suit risk tolerance.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.