IDEXX Laboratories Inc. (IDXX) was on a short list of seven companies that Jim Cramer favored on his Mad Money program Thursday evening. He suggested looking for a buying opportunity during this period of market weakness (a.k.a. volatility). Let's see what the charts look like and if there are any signals at this point in time.
In the daily bar chart, below, we can see that the price of IDXX has sold off about $40 this month. Prices broke a nine-month uptrend and came very close to touching/testing the rising 200-day moving average line yesterday. IDXX is below the declining 50-day moving average line and (for now) above the 200-day line.
The daily On-Balance-Volume (OBV) line peaked at the end of August and turned lower signaling more aggressive selling.
The trend-following Moving Average Convergence Divergence (MACD) oscillator broke below the zero line in late September for an outright sell signal. This indicator has not yet started to narrow so a cover shorts signal is not imminent.
In the weekly bar chart of IDXX going back three years, below, we can see that prices have tested the rising 40-week moving average line. Next week could see a break of the line.
The weekly OBV line shows some "rolling over" the past two months and the weekly MACD oscillator crossed to a take profits sell signal in early September.
In this Point and Figure chart of IDXX, below, we can see a downside price projection of a bearish $175. There looks like there is plenty of support below the market so I question this target.
Bottom-line strategy: IDXX showed some toppy price action from late July to early October before the sharp market declines of this week. Support could develop in the $210-$200 area but I want to see others come in and buy and turn the OBV line to the upside before making a recommendation to go long.