Industry: Medical Appliances & Equip
Somantics is a highly ranked stock (52) in the Medical Appliances group and looks poised for a big time breakout. How to tell? Notice the decreasing sell volume as the stock carves the second leg down of this double bottom base.. a sign that the number of those who want to sell is waning, clearing the way for buyers. That is exactly what can be seen as the stock forms the right side, indicated by the surge in buy volume. The only negative with this chart formation is that the second leg down did not undercut the first leg down at 9.23. You like to see this occur in order to shake out the last of the weak holders. But given the demand in the right side and the strength of the market, it may not matter much. After all, there are few perfect bases. Look for another surge in price and volume above 15.14 as a buying opportunity.