Globus Medical, Inc. (NYSE: GMED)

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders

Take a look at the 1-year chart of Globus (NYSE: GMED) below with my added notations:

During the past 6 months, GMED has repeatedly hit the $50 mark (red) as resistance. The stock just tested that level again on Friday, and a solid close above that $50 level should lead to much higher prices for GMED.

The Tale of the Tape: GMED has a key level of resistance at $50. A long trade could be entered on a hold above that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $50.

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!

Good luck!

Christian Tharp, CMT