While getting pummeled in the gold stocks awaiting resolution to scenarios 1 and 2 in the previous post, I thought I would put up a great chart of this small medical company, Cardica, Inc. It has been speculated that this company, which makes a complimentary minimally invasive product to the Intuitive Surgical (ISRG) DaVinci Robot, could be a buyout target of same. That is just speculation of course and the company should be looked at on its own independent merits, which I am starting to do.
Having intimate knowledge of ISRG (a former customer in my day job) and upon seeing the CRDC chart while rummaging around the internet, I wanted to use it as a chart study. I first saw it this morning before the market open and noticed it sneaking out of the down trend. Sneaky sneaky CRDC. Frustratingly, it is now exploding higher as often happens when enough traders see this event. So I will have to sit on my hands, do some more reading and if I like the company think about a pullback point.
But for now, I think this is a classic example of a grinding consolidation down to strong support with bullish divergence in the indicators. A good chart study indeed.
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