The healthcare space has gone through a rough patch compared to the broader stock market. Although the broad sector is improving it continued to lag behind the S&P 500 which is making new all-time high levels. The Biotech sub sector has been weighing it down for sure. But there are some bright spots.
One that has been stepping up lately is Wright Medical Group NV (NASDAQ:WMGI). This stock had been bouncing along at 52 week lows until starting a run higher at the end of June. After 11 straight days moving higher, the stock finally stalled last week. It has been consolidating the move up in a bull flag since.
The Measured Move out of the flag would take the stock to about 26.50. Short interest is high at about 12% to give it the fuel. And Momentum is on its side. The RSI is bullish and the MACD rising and positive. Finally, the Bollinger Bands® are opening to the upside as well.
The bull flag does not have to end today. In fact the RSI and MACD could use a few days more to reset lower for another run. Keep an eye on the price though. A break of that flag could certainly move the stock as fast as it did the last leg up.
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