Danaher (DHR) designs, manufactures and markets professional, medical, industrial, and commercial products and services. DHR posted an earnings beat Thursday and the price gapped higher. Let's check out the charts.
In this daily bar chart of DHR, below, we can see that prices were trading sideways for nearly three months before the upside price gap. Prices were already above the rising 50-day moving average line. DHR rallied Thursday and stopped short of the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line shows improvement from the middle of June. The trend-following Moving Average Convergence Divergence (MACD) oscillator has just crossed the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of DHR, below, we can see some improvement in the indicators. Notice the large white (bullish) candle recently? Prices have rallied to the underside of the 40-week moving average line.
The weekly OBV line shows a new rising trend from early June. The MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of DHR, below, we can see that the software is projecting the $336 area as a price target.
In this weekly Point and Figure chart of DHR, below, we can see a $346 price objective.
Bottom line strategy: DHR could dip to fill a small amount of Thursday's price gap. Traders could use a dip towards $270 to probe the long side. The $300 area is our price target for now.
