Shares of LivaNova (LIVN) have been moving sideways, within a trading range since April and a rectangle pattern has formed.
LivaNova is a medical device firm primarily focused on cardiovascular and cardiopulmonary solutions, as well as neuromodulation devices for treatment-resistant epilepsy and depression. The company reported earnings of -$0.15 per share on July 22. While this figure beat estimates, it was down 121.43% from the previous year. The company is looking forward to the full release of its advanced circulatory support product, LifeSPARC™ in the U.S.
Take a look at the 1-year chart of LIVN below with added notations:
LIVN had been in a trading range for several weeks. During that period of time, the stock formed a resistance level at $58 (red) and a level of support at $45 (green). At some point the stock will break one of these two levels created by the rectangle pattern.
A trader could buy LIVN after it surpasses the $58 resistance level with the expectation of a breakout. And a trader could short LIVN if it breaks the $45 support level with the expectation of a breakdown.
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LIVN shares were trading at $47.17 per share on Thursday morning, down $0.21 (-0.44%). Year-to-date, LIVN has declined -37.47%, versus a 4.24% rise in the benchmark S&P 500 index during the same period.
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Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
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