• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Healthcare

Is There More Life in Edwards Lifesciences?

Overall market and industry action could determine EW's next course.
By BRUCE KAMICH
Jul 18, 2016 | 12:05 PM EDT
Stocks quotes in this article: EW

Edwards Lifesciences  (EW) has more than tripled in the past three years and, with hindsight, would have been a great addition to pretty much anyone's portfolio. Does the future look as promising on the charts? 

In this daily chart of EW, above, we can see prices turned up in August from a low and headed higher with a dramatic gap to the upside in April. EW has partially filled the gap, zig-zagging lower to late June. The On-Balance-Volume (OBV) line made a shallow dip from May into June. The OBV line is back up to its May highs, suggesting that buying has been pretty aggressive since September, even during price setbacks.

Prices are currently above the rising 50-day moving average line and the 200-day average. The 12-day momentum study in the lower panel is likely to see a bearish divergence if prices make a new high. The momentum readings were very strong in April, and probably won't be exceeded even if prices make new highs this month. 

In this three-year weekly chart of EW, above, we see that prices are firmly above the rising 40-week moving average line. The weekly OBV line is neutral, not pointing down and not pointed up with the price action. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the downside above the zero line. Some traders see that crossover as a sell signal, but I and others take it as a liquidate longs sell signal, not an outright sell.

Strategy -- continued strength in the overall market and the medical device industry could lift EW above $111 for a breakout, but general market weakness in the third quarter could result in weakness below $99 and additional sell signals. It would be nice if we had a clear vision of the future here but technical analysis is a windsock and not a crystal ball. 

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

TAGS: Healthcare | Investing

More from Healthcare

There Are Market Bright Spots, but I View the July Rally as a Head Fake

Bret Jensen
Aug 3, 2022 10:30 AM EDT

It's hard to see stock valuations rising when inflation remains high and the economy appears headed for a recession if it isn't in one already.

A Recession Appears Inevitable, but There Are Still Places to Invest

Bret Jensen
Jul 27, 2022 10:30 AM EDT

A few homebuilders and healthcare stocks seem likely to hold up better than most of the market in a recession.

Change Healthcare Continues to Knock on a Breakout Level

Bruce Kamich
Jul 25, 2022 11:25 AM EDT

The CHNG chart is at an interesting juncture.

The Healing Process Begins for Cano Health

Bruce Kamich
Jul 21, 2022 1:30 PM EDT

Here's how to approach CANO as the shares have made a bottom formation.

With HCA Healthcare, I'm Getting Healthy Indications

Bruce Kamich
Jul 21, 2022 9:20 AM EDT

The healthcare provider is set to report earnings Friday.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • 08:54 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Secret to Dealing With FOMO
  • 03:51 PM EDT REAL MONEY

    AMD Second-Quarter Earnings Live Blog

    Real Money's Eric Jhonsa covers 's second-quarte...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login