Haemonetics Non-GAAP EPS of $1.14 beats by $0.06, revenue of $339M beats by $11.11M
Haemonetics reported strong results, with both Non-GAAP EPS and revenue exceeding market expectations.
The current price of $83.60 is positioned between the resistance level ($88.59) and the support level ($71.81), and with the 20-day moving average in a bullish arrangement and accompanied by high trading volume, there is a high likelihood of testing the resistance level, making entry worth considering.
Based on the current price of $83.60, if the upward trend continues and reaches the resistance level of $88.59, I will take profits. Conversely, if the downside risk increases and it falls below the support level of $71.81, I will cut losses.
The RSI(14) is at 66.5, approaching the overbought range, and the moving averages are in a bullish alignment. The trading volume is 1.71 times higher than the 20-day average, and the recent 7-day volatility has recorded +4.6%.
At the time of the forecast, a gradual rise towards the resistance level of $88.59 was assumed, accompanied by a bullish alignment of the 20-day moving average and high trading volume, with a target return of 3.2%. However, the actual result recorded a sharp increase of 25.0%, resulting in an OVERHIT designation. Additional positive news, such as the supply contract with CSL, played a complex role in generating a strong buying momentum that significantly exceeded the initially anticipated resistance level, which was not fully reflected in the outcome.
Through this trading experience, I learned that when strong performance momentum coincides with news related to key partnerships (such as supply contracts), it is better to trust the strength of the trend and flexibly widen the profit-taking line or apply a partial profit-taking strategy rather than conservatively setting the target price. In future scenarios with similar positive developments, I will more actively incorporate the impact of additional contract news into the scenarios, in addition to trading volume and thematic trends.