Teladoc Looks Healthy on the Charts - Look to Buy a Shallow Dip

 | Jun 13, 2018 | 11:10 AM EDT
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Until today, I have never looked at the charts and indicators of Teladoc, Inc. (TDOC)  . I must admit that I have never used their services even though it has been available to me through some health plans I've had over the years.

You could say I was never an early adopter, or you could say I am old school, and would rather be checked out by my local GP. One of my three daughter-in-law's has made use of it but I never bothered to get her opinion. Don't count on me for a channel check. Let's skip to the charts.

In this daily bar chart of TDOC, below, we can see a sideways trend for the stock from last June until February. At the end of February TDOC finally broke out on the upside. The actual low point or start of the advance was in November and that is where the slope of the 50-day moving average began to turn positive. 

The slope of the 200-day moving average line is bullish and this indicator was tested in November, January and February.

The daily On-Balance-Volume (OBV) line began to turn positive in January, signaling that buyers of TDOC had become more aggressive.

The trend-following Moving Average Convergence Divergence (MACD) oscillator is well above the zero line and is pointed higher.

In this limited weekly bar chart of TDOC, below, we have all positive signal. Prices are above the rising 40-week moving average line.

The weekly OBV line shows a positive trend the past two years and the line has moved up to a new high with the price action.

The weekly MACD is also bullish.

In this Point and Figure chart of TDOC, below, we can see an upside price target of $67.60.

Bottom line: TDOC looks a little extended on the daily chart so some sideways price action or even a shallow dip may be in order. Traders looking to go long TDOC should try to buy a dip to the $55-$54 area and risk below $49. A move into the mid-to-upper $60's is my price target.

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