Stock Chart Analysis ABAX

Stock Chart Analysis ABAX

Abaxis, Inc. (Public, NASDAQ:ABAX)

ABAX just finished pulling back into long term support and looks like it may be confirming it as support. The 26.75 area was previous resistance in 2006 and 2007, before being broken late last year. While it may not be ready to resume the rally from here, there are a few interesting possibilities here. First, a trade to the declining trend line looks likely and would yield a 10% plus move. For longer term traders, there appears to be a good chance that a longer term low is being put in here as well. It just reclaimed the 20 day sma on huge volume, although the volume could be misleading as it was just added to the SP600 index. It should challenge the 50 day sma next as it works it's way higher. The stop is pretty easy to figure as well, with a couple different spots below depending on your timeframe. The biggest drawback is that it already moved 5%+ today, so a little backing and filling would be ideal for a better entry.


Good Trading,


Joey

for more analysis, check out downtowntrader.com