Shares of Merit Medical Systems (MMSI) topped out at $20.32 in 2004 and pulled back into single digits. MMSI tested the high in 2011 and sold off once again, posting a higher low at $9.15 in March 2013. The stock returned to the breakout level in April of this year and eased into a symmetrical triangle that may yield a major breakout and rally above $30.
Buy the breakout or within a narrow range at resistance.
On Balance Volume (OBV) has lifted to an all-time high, supporting the upside. The seven-week triangle pattern shows a series of higher lows but it still hasn't tested the April high at $21.59. It rallied out of a week-long base in Tuesday's session and could test the early June high at $21.36. A breakout could unfold rapidly once it trades above that level. Relative strength cycles are now aligned for higher prices as well.