Intuitive Surgical (ISRG) develops and manufactures da Vinci Surgical Systems and other instruments for invasive surgery -- real cutting edge stuff. A sell side fundamental analyst lowered their price target to $225 but this may be optimistic when we look at the charts.
In this daily bar chart of ISRG, below, we can see a top pattern in September-December before prices started a downtrend. Prices are now trading below the declining 50-day moving average line and below the declining 200-day line. The trading volume shows an increase from January as more traders have reacted to the decline in price and have voted with "their feet." The On-Balance-Volume (OBV) line shows a decline from April telling us of a shift towards more aggressive selling of shares. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of ISRG, below, we see a bearish picture. Prices are in a downward trend and we fail to see a bottom reversal pattern or lower shadows to give us some confidence that prices could stabilize. Prices trade below the declining 40-week moving average line. The weekly OBV line is pointed down, and so is the MACD oscillator. Notice the band of potential support in the $210-$150 area?
In this daily Point and Figure chart of ISRG, below, we can see a potential upside price target in the $235 area.
In this weekly Point and Figure chart of ISRG, below, we can see a downside price target in the $104 area.
Bottom line strategy: Shares of ISRG could bounce with a recovery in the broad market averages, but this may be a temporary bounce and further declines are possible with the risk being a break of long-term support in the $210-$150 area.
