On Monday night, a caller asked Jim Cramer about Intuitive Surgical (ISRG) : "That was a good quarter and a good situation," said Cramer in the Lightning Round of Mad Money. Let's check out the charts and indicators.
In this daily bar of ISRG, below, we can see a very wide sideways trading range. The wide range is bounded by $430 on the downside and $590 on the topside. Prices have crisscrossed the moving averages several times in the past 12 months.
Prices recently rolled over in the $530-$550 area and gapped below the declining 200-day moving average line and the rising 50-day line.
The On-Balance-Volume (OBV) line also stalled out in July and the Moving Average Convergence Divergence (MACD) oscillator gave a take profits sell signal in early July and is about to cross below the zero line for an outright sell notice.
In this weekly bar chart of ISRG, below, the longer-term picture looks more like a top pattern than a sideways trading range. Prices are below the declining 40-week moving average line.
The weekly OBV line has been weak for the past four months suggesting that sellers have been more aggressive. The MACD oscillator is likely failing at the underside of the zero line.
In this Point and Figure chart of ISRG, below, we can see a potential downside price target of $427.
Bottom line strategy: Unless ISRG makes a quick upside reversal it looks like further weakness is likely. A test of the early June low in the $460-$450 area is the first target.