Pro Medicus is a provider of health imaging software to hospitals and medical centres in Australia, Europe, and North America.
“PME reported its full year results this week and the market was clearly pleased with the profit growth and the increasing contract wins in the US,” Michael said.
“PME is one of those stocks that, when it gets moving, it can really move.
“It tends to rally very strongly, and then it takes a breather for weeks or months in preparation of the next move.
“As we can see over the last year, it has done this on a few occasions.
“Those rectangular trading ranges on the chart (see chart) is where it consolidates.
“The trick is to buy it when it moves out of these trading ranges and gets motoring again.
“I have been buying it for my clients on the back of yesterday’s result.
“As we can see on the chart, it is now breaking out of a recent trading range (circled) and this is therefore the start of another strong rally.
“Any slight dip in the next day or two back in the low $60’s would be a buying opportunity.”
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