Ambiomed Inc. (ABMD) was mentioned by Jim Cramer during his Mad Money program Wednesday night as among the top-10 best-performing stocks in the S&P 500 over the past five years. But instead of looking backward, let's look forward using the charts and indicators.
In the daily bar chart of ABMD, below, we can see a downtrend in progress. The slopes of the 50-day moving average line and the 200-day line are negative.
The daily On-Balance-Volume (OBV) line is in a downtrend from February and signals to us that sellers of ABMD have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is just below the zero line and looks like it will turn lower again.
In the three-year weekly bar chart of ABMD, below, we can see a big rally from $100 back in 2016 and early 2017 up to $450 last year. That's very impressive but prices have subsequently declined from $450 to around $250.
The slope of the 40-week moving average line has been negative for several months and the weekly OBV line has been in a downtrend the past twelve months.
The MACD oscillator on this longer time frame could generate a cover shorts signal or not -- it all depends on the price movement ahead.
In this Point and Figure chart of ABMD, below, we can see the downtrend and a potential bearish price target of $233.
Bottom-line strategy: Successful investing, in my opinion, is about being forward looking. Looking ahead on ABMD I am anticipating further declines to the $230 area. Stand aside.