Conclusion, Investment Implications, Strategy

AngioDynamics, Inc (ANGO) is amid favorable conditions to resume its November 2020 major uptrend from minor Tactical support near $26.04, which is currently being tested.  A sustained rise above this area would target an additional 14% rise to $30.25 per share.  This is an Asbury Momentum trade idea.

Analysis and Rationale

AngioDynamics, Inc (ANGO) designs, manufactures, and sells various medical, surgical, and diagnostic devices used by professional healthcare providers for the treatment of peripheral vascular disease and vascular access; and for use in oncology and surgical settings in the United States and internationally. It sells and markets its products to interventional radiologists, interventional cardiologists, vascular surgeons, urologists, interventional and surgical oncologists, and critical care nurses directly, as well as through distributor relationships. The company was founded in 1988 and is headquartered in Latham, New York.

The rightmost green highlights in the upper panel of Chart 1 below show that ANGO is currently rebounding from a Jly 15th test of its 50-day moving average, a widely-watched minor trend proxy current situated at $26.04.  Meanwhile, the blue daily relative performance line between ANGO and the SPDR S&P 500 ETF (SPY) in the lower panel is rebounding from a coincident test of its 63-day moving average, which is our Strategic time period. Together they suggest a new Tactical buying opportunity within ANGO’s November 2020 major uptrend as defined by its 200-day MA. 

Note that similar tests of outright and relative support in early June and in late March coincided with new Tactical periods of strength.

Chart 1

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $25.51 area, a long entry price of $26.65 would provide a 1:3.2 risk/reward ratio (risking $1.00 to make $3.20) with an initial risk of 4.3%.

Table 1

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