Conclusion, Investment Implications, Strategy

Haemonetics Corp (HAE) is amid favorable conditions to resume its October 2020 Strategic advance from major underlying support near $105.19, which is currently being tested.  A sustained rise above this area would target an additional 25% rise to $142.11 per share. 

Analysis and Rationale

Haemonetics Corporation (HAE), a healthcare company, provides hematology products and solutions. It operates through three segments: Plasma, Blood Center, and Hospital. The company offers automated plasma collection devices, related disposables, and software, including NexSys PCS and PCS2 plasmapheresis equipment and related disposables and intravenous solutions, as well as integrated information technology platforms for plasma customers to manage their donors, operations, and supply chain; and NexLynk DMS donor management system. Haemonetics Corporation was founded in 1971 and is headquartered in Boston, Massachusetts.

The rightmost green highlights in Chart 1 below show that HAE is testing major underlying support at its 200-day moving average, currently at $105.19 while hovering at monthly (our Tactical time period) oversold extremes. The other green highlights show that previous similar oversold extremes on Jan 28th, and in September and August 2020, helped trigger the resumption of the stock’s October 2020 major uptrend as defined by the 200-day MA.  This sets up a low-risk buying opportunity because, If that major uptrend is still valid, this is where it should resume.

Chart 1

A sustained rise above the $105.19 area would indicate this is indeed the case and would target an additional 25% rise to $142.11 per share. 

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $109.54 area, a long entry price of $113.76 would provide a 1:6.7 risk/reward ratio (risking $1.00 to make $6.70) with an initial risk of 3.7%.

Table 1

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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.