Cardiodynamics International

CDIC

Company. "CardioDynamics is committed to fundamentally changing drug management with ICG. The Company's primary product, the BioZ®, uses proprietary Impedance Cardiography (ICG) technology to noninvasively assess a patient's hemodynamics, data which typically has been available only through a time-consuming, costly, and potentially dangerous invasive procedure called Pulmonary Artery Catheterization (PAC), or the Swan Ganz Catheter." (company website)

Buy. CDIC broke out above the $4.50 level two weeks ago and has been consolidating since then around $5.25. There has been uptick in relative strength (RSI) and the trend (black ADX line) continues to strengthen. Although money flow (CMF) is falling off, it is still quite respectable. The 200-day moving average has leveled off and the 50-day average turned up as well. With just a little encouragement, CDIC could break above the previous peak in September and yield some nice short-term profits.

Sell

14-Feb-05. I guess there wasn't enough encouragement (see above). The promising little peak at the end of December turned out not to be the start of something grand but a failed test of the previous peak.

Looking at the chart, I suppose the signs were there if I had been sensitive to them: buying pressure (+DI) was declining, as was relative strength (RSI). Also price momentum (PPO) had flattened and money flow (CMF) was weakening.