Medical device maker Medtronic (MDT) is helping patients live healthier lives every day. While that is amazing, it may not be enough to generate a sustained advance for its share price.
Let's check out the charts and indicators.
In the daily bar chart of MDT, below, I can see that share prices have been stuck in a sideways trend the past 12 months. MDT has been trading around the 50-day moving average line and the 200-day moving average line.
The trading volume looks like it has declined since December. The On-Balance-Volume (OBV) line shows a rise to June followed by a decline suggesting a shift from aggressive buying to aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of MDT, below, I see a less than robust technical picture. The shares made a major decline from 2021 to early 2023. MDT has traded above and below the 40-week moving average line this calendar year.
The weekly trading volume histogram has weakened the past year and suggests that investor interest has shrunk. The weekly OBV line has been neutral for the past year and a half. The Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line recently for an outright sell signal.
In this daily Point and Figure chart of MDT, below, I can see a potential downside price target in the $67 area.
In this weekly Point and Figure chart of MDT, below, I can see a downside price target in the $67 area.
Bottom-line strategy: MDT looks like it will retest the lows of December and March. The Point and Figure charts suggest that new lows for the move down are possible. Avoid the long side of MDT.
