Were You Prepared For This Stock's Breakout Last Week?
by Mike Paulenoff
August 29, 2020 • 7:29 PM EDT
Edwards Lifesciences Corporation (EW) broke out this past week, and MPTrader members were prepared.
In his Trading Room a month earlier (Mon July 20), Mike highlighted the stock for its potentially powerful upside technical set-up, writing:
"Since last November, EW has undergone a sharp correction from 82.55 (11/19/19) to 51.51 (3/23/20), and then from the March low has carved out a pattern that exhibits bullish form, and is putting upward pressure on an 8-month resistance line that if hurdled and sustained will trigger targets of 100 to 110."
Since then, EW continued to put upward pressure on its prior-high resistance zone between 80 and 82.50, finally breaking out this past week when it surged to a new all-time high at 84.60. The stock closed Friday at 84.33, a full 13.8% above its price at Mike's July 20 alert.
See Mike's July 20 analysis here.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 15-day Trial!
More Top Calls From Mike
On Sep 2, with QQQ trading at 300.01, down nearly 4 points from its pre-market thrust to a new all time high at 304.02, Mike Paulenoff alerted MPTrader members to the potential danger signals lurking within his chart work. He wrote:
"Just in case TSLA and AAPL weakness represent the first shot over the bow ahead of a significant correction in the NDX, my work on QQQ indicates that a break and close under 298.00 will trigger sell signals that project to 280.
This past Monday (Aug 31), Mike Paulenoff started alerting MPTrader members about opportunities UVXY, then trading at 21.53.
He wrote: "UVXY continues to act like the canary in the coal mine because it is holding up so well despite ES, SPX, SPY climbing to new all time highs. UVXY remains 12% above its 8/26 low at 18.76 and, more conspicuously, 50% above its 2/20/20 low at 10.65!"
Mike added, "UVXY needs to climb and sustain above 23.
Back on April 13, with Range Resources (RRC) trading at 3.91, Mike Paulenoff told members in his Trading Room:
"I am very friendly to RR 'down here,' looking for it to climb above 4.90-5.10 nearest key resistance, which will project upside potential to 10.00 next. Only a sharp decline that breaks its 3/13 low at 1.61 will invalidate my current technical set up.
This past Wednesday morning, just hours after TSLA announced a 5 for 1 stock split, and with TSLA trading at $1448, Mike Paulenoff wrote in his live Trading Room:
"All of the action off of the 7/13 all time high at 1794.99 represents EITHER a high level bullish digestion period ahead of another upleg OR a distribution top in the making.
In his morning report this past Tuesday (see charts), Mike Paulenoff highlighted a set-up in Sorrento Therapeutics (SRNE), trading at $10.61 at the time, noting potential upside projections initially to $14.50-$15.
While citing the event risks associated with a volatile biotech name in the Covid-19 space, he wrote: "The increasingly compelling near- and intermediate-term technical set up spanning the past 4-/12 years represents a massive accumulation period that is occurring for a reason.