During Wednesday night's Mad Money program, Jim Cramer gave the nod to long-time favorite, Edwards Lifesciences Corp. (EW) . Let's see what has been happening with the charts and indicators of this medical equipment maker.
In this daily bar chart of EW, below, we can see that prices just surged northward to a new high. EW is firmly above the rising 50-day moving average line as well as the bullish 200-day line.
The daily On-Balance-Volume (OBV) line has been in an uptrend from early June and it shows us that buyers of EW have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned to the upside again for a fresh outright go long signal.
In this weekly bar chart of EW, below, we can see that prices have more than doubled over the past three years. EW is above the rising 40-week moving average line which has done a great job over the past in identifying the uptrend.
The weekly OBV line has also been in an uptrend over the past three years confirming the price strength and telling us that buyers of EW have been more aggressive.
The Moving Average Convergence Divergence oscillator has narrowed but has not crossed to the downside for a formal take profits sell signal.
In this Point and Figure chart of EW, below, we can see the recent upside breakout at $231.52 and the potential upside price target of $261.
Bottom line strategy: If you are not already long EW or just want to add to longs you should use any minor intraday dip today or tomorrow to buy. Risk below $220 for now but look to raise that level quickly. The $260 area is our first price target.
