Intuitive Surgical (ISRG) was trading lower Friday as traders react to disappointing guidance. ISRG was already pointed down so let's check and see how far shares may decline.
In this daily bar chart of ISRG, below, we can see that prices made three rally attempts since August and each surge to the upside met with failure. Buyers kept coming in around $320-$310 but that support broke down and prices tumbled lower. ISRG is trading below the bearish 50-day moving average line and below the cresting 200-day average.
The On-Balance-Volume (OBV) line has turned lower and tells us that sellers are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of ISRG, below, we see a bearish setup. Prices have broken sharply below the rising 40-week moving average line. A longer-term uptrend (line not drawn) has been broken.
The weekly OBV line peaked in late October. The MACD oscillator crossed to the downside in September and is approaching the zero line.
In this daily Point and Figure chart of ISRG, below, we can see a downside price target of $261.
In this weekly Point and Figure chart of ISRG, below, we can see a target of $213.
Bottom line strategy: A large triple top and a result in a nasty decline and it looks like that is underway for ISRG. Avoid the long side.
