Staar Surgical – Ascending Base

• Posted by flare9x
• on January 17th, 2012

 

In the recent 3 quarters $STAA posted EPS +150% +200% and +133%. Sales have been increasing +8% +19% and +16%. Estimated earnings for 2012 is +167%. The stock has relatively small float of 35.49M shares. If it sees any type of large institutional buying, it has potential to rise quickly in a short period of time.

$STAA has been showing high relative strength and has formed an ascending base. The historical precedent for this set-up is the Monogram Industries chart from 1966.

In August 2011, $STAA broke out from a 13 month sideways consolidation on approx +200% above the weekly average volume. This rapid expansion in volume is the ultimate indication of institutional interest.

While the bear market ensued, $STAA displayed relative strength and advanced to form a series of ascending bases.  Each consolidation broke out with strong volume, revealing strong demand for the stock. In mid December, $STAA reached new 6 year price highs while $SPY was struggling below its 50dma.

Currently, the 3rd base in the formation is showing volume dry-ups which suggests that selling pressure is diminishing. Also note that the volume is the lowest since the up-trend began.

Today, $STAA appreciated 6.77% on +66% above the daily average volume. This was the highest accumulation day since the new base began.

This strong action deep in the base could be a tip-off further price appreciation.  $STAA has a pivot over $11.80.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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