The BEAT Goes on at BioTelemetry

 | Mar 20, 2017 | 10:58 AM EDT
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beat

Time to date yourself. Do you remember the song "The Beat Goes On" recorded by Sonny and Cher? It is one of those songs you can't get out of your head after you hear it. I have been thinking about the song all morning after seeing the charts of BioTelemetry with the symbol (BEAT) . You can hum or sing along as we look at the charts of this provider of cardiac monitoring services.

In this daily bar chart of BEAT, above, going back 12 months we can see that prices have more than doubled from the April lows. BEAT is above the rising 50-day moving average line and the rising 200-day moving average line. The 200-day line was tested in early November and with hindsight was a good buying opportunity.

The On-Balance-Volume (OBV) line has been improving the past year and tells us the uptrend is in good shape, with accumulation and aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since November and is currently in a bullish configuration.

In this weekly chart of BEAT, above, we can see that longs from early 2014 have done very well with BEAT over the past three years. Prices are pointed higher above the rising 40-week moving average line. The weekly OBV line has been bullish since July 2014 and continues to confirm and support the price advance. The MACD oscillator has been above the zero line for much of the past three years. The oscillator generated a fresh outright bullish buy signal at the beginning of December.

In this Point and Figure chart of BEAT we can see the bull trend better than on the weekly bar chart. The move to $22 on this chart was a triple top breakout and suggests a potential price target of $49-$50.

Strategy: Traders can go long or add to longs on strength above $28 risking below $24 for now. The $50 area is our upside price target

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