Monday, Mar 4, 2013
 
 

NuVasive, Inc. (NASDAQ: NUVA)

 

NuVasive, Inc., a medical device company, engages in the design, development, and marketing of minimally disruptive surgical products and procedures for the spine. The company’s products focus on applications for spine fusion surgery. It offers products primarily for the thoracolumbar spine and cervical spine. The company’s principal products include a minimally disruptive surgical platform called Maximum Access Surgery (MAS), as well as cervical, biologics, and motion preservation products. Its MAS platform combines four categories of product offerings, including NVM5 and NVJJB, its proprietary software-driven nerve monitoring systems; MaXcess system that provides access to the spine with minimal soft tissue disruption; specialized implants that are used for interbody disc height restoration for fusion and stabilization of the spine, as well as biologic products comprising FormaGraft, a collagen-based synthetic bone substitute and Osteocel Plus, an allograft cellular matrix. Its biologic products also comprise AttraX, a synthetic bone graft material; and Triad, an allograft cellular matrix containing viable mesenchymal stem cells. In addition, the company offers a range of bone allograft in patented saline packaging; disposables and spine implants under the CoRoent brand name; and fixation devices, such as rods, plates, and screws.

To analyze NuVasive’s stock for potential trading opportunities, please take a look at the 1-year chart of NUVA (NuVasive, Inc.) below with my added notations:

1-year chart of NUVA (NuVasive, Inc.)

The main price level to watch on NUVA is $18 (navy). Not only is the $18 resistance readily apparent over the (2) months and back in March, but that price also acted as support back in May. So, the $18 level is key to this stock. If you are bullish, you would want to buy the stock on a pullback to $18. However, if you are bearish, you might short NUVA on a break of the $18 support.

The Tale of the Tape: NUVA has a couple of simple trading opportunities based on its key level of $18. A long position could be entered at the $18 support with a stop placed below that level, or a short play could be made on a break below $18 if that should happen.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

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Christian Tharp, CMT

Want to know which trades to make, how to manage your stops and when to exit your trades? As a CMT with over a decade worth of experience in trading & mentoring traders, I'd like to offer you the opportunity to let me help you overcome all of your obstacles.

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