This checks most of the boxes for a Power Play. My biggest concern is that we aren’t in a bull market. Power Plays can still work in bear markets, but they are less likely. However, this is in the Health Care sector, which has been having successful power plays lately and its RS within the sector is 90.99%. Since it is so strong in a hot sector, I think it has a good chance despite the bear market.
Power Play Criteria
| Bull market | NO, it has less of a chance of working, but can still work. |
| Early part of stage 2 | YES, this just started trading in 6/2021. The price has been oscillating around the 200-day and is now picking up volume. Based on the stacked MA’s this suggests in may be just transitioning into Stage 2. |
| >= 100% price move on huge volume in <= 8 weeks | Yes, 114% in one week. |
| Prior price action was dormant | NO, since 6/2022 it’s been pretty volatile |
| Sideways price action after the move | YES |
| Sideways action corrects <= 25% in <= 6 weeks | YES, the initial selloff after the 114% gain was 25.94%. Since that low it recovered back into the middle of that price drop and has maintained a tighter range. |
| VCP in sideways move unless the whole move is <= 10% | YES, as noted price range is consolidating and volume is drying up |
