NEW YORK (TheStreet) -- Shares of New Jersey-based health-care vendor MedAssets (MDAS) started an upward trend in January 2015, and, after a short bout stuck in a trading range between $18 and $20 for about three months, the price has risen to $23, following the upward trend line as shown below (A).
The same upward trend is confirmed by the 50-day moving average. Since the upward trend started, the price has risen by 25% and the long downward trend (B) that started during the first days of 2014 finished after the break-out (C).
Recently, the hedge fund Litespeed Management built a position. This could be the event (D) that has given the stock's price the power to move past resistance at $22.50.
The time to buy is now, with a very short stop loss if the price falls under $22.50, or, for brave traders, they can wait the price to break-down to the upward trendline (A).
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.