Today I’d like to share with everyone a stock from my “Equities In Trend” watchlist. I’ve had an eye on Conmed ($CNMD) for a little while now, waiting for a pullback to a lower risk, better priced entry, as I believe we have now. Let me break down this chart for you first on the daily chart, and then you can analyze the weekly on your own.
If we use the Exponential Moving Averages (8/21/50) here to tell us whether or not we are trending, prices are clearly bullish. We have previously “wicked” into the 50EMA four times, and succesfully held this level, each time providing an excellent entry opportunity by the close, let alone if held for a short duration. We have now touched the 50EMA with the body of the candlesticks, bounced up, and from there we launched a huge rally that took us through the resistance around 01/11/2014. From there, $CNMD has flagged into it’s previous resistance (now support), as well as into it’s 50EMA. We know that flags are typically continuation patterns and this one is bullish in nature. So, to sum it up:
- 50EMA Consistently Providing Support for Bull Trend (5 Times)
- Bull Flag
- Long Term Uptrend