Technical Analysis: Conformis

Mar 12, 2021 | Swing Trading mergers and acquisitions (M&A)

Conformis (CFMS)

Entry Price/Stop/Target: 0.9950/0.6361/1.4267

Time Frame: 3-4 weeks

Description
Conformis (CFMS) is a medical technology company with a market cap currently at 176.85 million. CFMS strives to develop, manufacture, and sell joint replacement implants. The company specializes in producing personalized products specifically made for each individual uniquely. Currently, CFMS markets and distributes in the United States, Germany, The United Kingdom, Austria, Ireland, Switzerland, Singapore, Hong Kong, Malaysia, Monaco, Hungary, Spain, and Australia.

Thesis
CFMS has had momentous swings in the past years and a new swing upwards could be fueled by speculations or completion of a third new milestone deal with Stryker. An acquisition of Conformis by Stryker would be the largest potential catalyst that could send this stock past our target by a large margin.

Technical Analysis
CFMS is portraying an uptrend, downtrend with a mix of double bottom patterns over the 3 months analyzed below. We have noticed an uptrend followed by a double bottom for about 10 trading days which was leading to a downturn trend. Now we are noticing an uptrend. The MACD indicator crossed over 3 days ago indicating a bullish signal. The RSI indicates the stock is neither over nor undersold, signaling more confident investors. An excessive downtrend has been noticeable for the last 1 month, it is not sustainable, and occurs only 10% of the time. Expect the trend to turn sideways or higher.

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Weekly Review

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