Heart-focused medical device maker Edwards Lifesciences (EW) reported a Non-GAAP EPS of $0.61 which missed by $0.01, revenue of $1.32B which missed by $10M. EW has revised their guidance for 2022. A number of fundamental analysts have cut their price targets. Not a good morning for EW shareholders this Friday.
Let's check out the charts.
In this daily bar chart of EW, below, we can see the price action through Thursday's close. Prices were down about 15% in morning trading. In this chart we can see that prices have lost ground the past 12 months. Prices trade below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line has been in a decline since the end of December. The trend-following Moving Average Convergence Divergence (MACD) oscillator is still bearish but was improving in October.
In this weekly Japanese candlestick chart of EW, below, we can see that prices are in a longer-term decline as they are trading below the bearish 40-week moving average line. Upper shadows tell us that traders are rejecting the highs and that the path of least resistance is down.
The weekly OBV line shows us more aggressive selling for about 18-months and points the way to lower prices. The MACD oscillator is bearish.
In this daily Point and Figure chart of EW, below, we do not have this morning's price action. The chart still shows an upside price target. A trade at $80 will refresh the downtrend.
In this weekly Point and Figure chart of EW, below, we used close only price data. Here the software projects the $69 area as a potential price target.
Bottom line strategy: The charts and indicators of EW are bearish and traders should avoid the long side of the stock.
