Health services company C.R. Bard (BCR) corrected lower over the summer and fall, but it has come back strong in the past three months, making a breakout over $240 with the technical studies confirming the price gains.
Our sights are set on still higher prices for BCR with a "three handle" not unreasonable in the months ahead. Let 's examine the latest charts and indicators.
In this one-year daily chart of BCR, above, we can see prices made a "two-legged" decline from $240 in July to touch the $205 area. BCR spent about three weeks below the rising 200-day moving average line in November and December, but this weakness turned out to be a temporary situation with prices catching a strong bid in December. BCR rallied above the 50-day and 200-day moving averages and broke the downtrend from the early July high. Prices stalled a little around the previous high of $240, but they have subsequently broken still higher.
BCR is above the rising 50-day moving average line as well as the rising 200-day moving average line. The On-Balance-Volume (OBV) line turned up in September before price bottomed in November. The OBV leads prices and has confirmed the price gains with its own new high for the move up. The Moving Average Convergence Divergence (MACD) oscillator has been bullish since mid-December when it moved back above the zero line.
In this three-year weekly chart of BCR, above, we can see a very steady 40-week moving average line that defines the uptrend. BCR is above the rising 40-week line and the weekly OBV line has turned up in the past three months. The weekly MACD oscillator crossed to the upside above the zero line for a fresh outright go-long signal in the lower panel.
This Point and Figure chart of BCR, above, does not go back all that far in time but it does show a breakout over $240 and an ambitious upside target of $327 considering the recent consolidation.
Bottom line: BCR is not extended on the upside so I would not look for much of a dip to be a buyer. New longs may have to risk below $230 for now, but I suspect stops can be raised as BCR works higher in the weeks and months ahead.