ENDP Breakout

ENDP Breakout from Cup & Handle Again

ENDP broke through 18 today with a high of $18.10 so far.

blog endp break 6-6-2016

ENDP has set and broken out of two cups and handles with a third possible with a little imagination. The first one was the bottom and is signified by the 1-2-3. One is the bottom, two is the reaction bounce high and three is the second bottom, which is a higher high. The second cup & handle is 4-5 and 6. Four is the new high with five being the reaction low which probably started as the folks in at $12.75 taking their profit. Six is the new higher high and seven is the breakout over the previous high of $16.01. Although the new breakout high was only $16.05 resistance was $16.01 and was broken. Even a few cents tells you that the people wanting to sell in the $16.01 area have been used up.

 

In this second chart use see the retracement off the breakout high and another little break above $16.01 and then a big break through the following day.

blog endp br 2 6-6-2016

At the top of the chart ENDP breaks into the gap created on 5/6/2016 with a nine dollar gap down on that date. Once a gap is entered the stock wants to close it. The top of the gap is a $25.80 and my sell target is $25.00. There is tail resistance at $19.58 from a low in 2010 but with a P/E in the 3’s I don’t think that will stop it.

For me closing the gap is a relative thing. ENDP had a high of $96.58 and a low of $12.56. If this pattern appeared in the upper half of this chart I would have ignored it, but just a few dollars off the bottom is a completely different animal. I would place the likelihood of a fill here at 95% or so. Those are the kind of odds I like.

Good Luck to All

Dave C

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