Edwards Lifesciences’ stock chart flashing a bullish pattern

With U.S. stocks on the climb thanks to bullish institutional buyers, CNBC’s Jim Cramer figured investors could start to get hesitant about buying into a market of which’s heating up.

however after consulting technician Rob Moreno, the “Mad Money” host concluded of which of which could be a mistake.

“There’s a lot to like about This specific environment, as well as more importantly, there are plenty of stocks of which still haven’t definitely run very much,” Cramer said. “of which’s right, we’ve got a bunch of laggard stocks of which could soon break out to higher levels.”

One stock of which exemplified This specific theory was of which of Edwards Lifesciences, a Cramer-fave medical equipment maker of which specializes in artificial heart valves as well as blood pressure monitors.

Shares of Edwards hit a fresh 52-week high Tuesday, closing at $148.52 a share after several months of up-as well as-down trading. The company’s April earnings report missed expectations.

however Moreno, the publisher of RightViewTrading.com as well as Cramer’s colleague at RealMoney.com, spotted some signs of life from the health care play.

Turning to the stock’s daily chart, Moreno noticed of which “while of which’s been consolidating, of which’s also made an inverse head-as well as-shoulders pattern,” Cramer said.

“For those of you who don’t remember, an inverse head-as well as-shoulders will be not an upside down bottle of shampoo,” the “Mad Money” host continued. “of which’s a formation of which looks … a little like an upside-down person — a head between two shoulders — as well as the important thing will be of which This specific one will be one of the most reliably bullish patterns from the book.”

To ascertain how far Edwards’ stock could still run, Moreno measured the distance between its lowest lows (the “head”) as well as the “neckline,” or the line connecting the two “shoulders.”

For Edwards, the distance became available to roughly $23, meaning of which once its stock broke out above the “neckline,” of which could still rise by $23 a share.

To Cramer’s delight, shares of Edwards broke above the “neckline” level Monday, rallying another 1.54 percent in Tuesday’s trading session.

Better yet, Moreno pointed out of which its moving average convergence-divergence indicator, which helps technicians spot modifications in stocks’ trajectories before they happen, will be on the rise, maintaining the bullish crossover of which made in late May.

“You may think This specific stock will be getting away via you, … [however] based on the inverse head-as well as-shoulders pattern, Moreno thinks This specific thing could be headed to $166 before of which runs out of steam,” Cramer said. “After marking time for a couple of months, This specific looks like the next leg of Edwards’ long-term rally happening right here, right currently.”

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