Four days ago the stock violated resistance at $24.00 on more than a million shares which was quite heavy, but it is clear today that the move was a failed one. It is already at $24.4 as I am writing this blog. When there is a failure of a break out the price is going to the opposite side of the break out and it is quite powerful move. In the case of a break down like we had in cmed, the breakdown attracts a lot of shorts but when the stock gets back above the support not only it creates a lot of pressure for the shorts to cover but there are also new long positions that are coming in. I would not be surprised if this stock gets back into the top of the trading range at $27.5 and it can happen real fast.
