HeartWare International, Inc., a medical device company, designs, develops, manufactures, and markets miniaturized implantable heart pumps or ventricular assist devices (VAD) for the treatment of advanced heart failure in the United States, Germany, and internationally. It offers HeartWare Ventricular Assist System, which comprises a VAD or blood pump, patient accessories, and surgical tools designed to provide circulatory support for patients in the advanced stage of heart failure. The company is also developing the MVAD, a miniaturized blood pump intended for chronic heart failure patients; and SYNERGY Circulatory Support System, a partial support system designed to treat less sick, ambulatory, chronic heart failure patients who are not yet inotrope-dependent. The company markets its products directly to clinicians and medical facilities, as well as through medical device distributors.
Take a look at the 1-year chart of HeartWare (NASDAQ: HTWR) below with the added notations:
HTWR has been making its way lower for most of the past year. After getting a nice bounce off $35 in mid-October, the stock made its way lower again, ultimately finding support at $25. HTWR has rallied since, but now the stock has made it back up to the $35 gap down point where it should now find some resistance.
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The Tale of the Tape: HTWR has a key level at $35. A trader could enter a long position on a break above $35 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead anywhere near the $35 mark.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach