Intuitive Surgical Inc. (ISRG) has fallen about $80 this month but it looks like further losses could lie ahead. Let's scrub in and check out the charts and indicators on this name mentioned by Jim Cramer on his Mad Money program Thursday evening.
In the daily bar chart of ISRG, below, we can see that prices have closed below the flat 50-day moving average line. The 200-day line is still intact and rising. It intersects around $470 or so. The level of trading increased as prices declined this month and the daily On-Balance-Volume (OBV) line declined. Sellers of ISRG were more aggressive.
In the lower panel the Moving Average Convergence Divergence (MACD) is crossing the zero line for an outright sell signal.
In the weekly bar chart of ISRG, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been stalled the past several months and has diverged from the bullish price action.
The weekly MACD oscillator has crossed to the downside for a take profits sell signal on this longer time frame.
In this Point and Figure chart of ISRG, below, we can see a downside price target of $443 being projected.
Bottom-line strategy: ISRG could hold the round number of $500 and rally back, but with a number of sell signals on the charts I think the risk is for further declines. Play defense for now.