A 10-year big base for Alphatec (ATEC)

We received a request to look at the chart for Alphatec Holdings (ATEC), a small cap healthcare equipment and supplies stock.

Stepping back and examining the monthly chart, shows that ATEC is breaking higher from a 10-year+ big base, which is a longer-term bullish setup. This breakout is firmly intact above 19.14-17.88 (breakout point and last month's low) with room to run to the next resistance zone at 28.80 to 30.40 and upside pattern counts at 32.50 and 37.00.

Moving into the mid 30s (35.65) would mark a 38.2% retracement of the April 2010 to February 2019 decline.

If needed, the 50.0% and 61.8% retracement levels offer additional targets near 46.31 and 56.96, respectively. The 50% level coincides with the lower high from May 2011 at 46.92.

Chart 1: Alphatec Holdings (ATEC): Monthly chart