Intuitive Surgical (ISRG) was about about 3% this afternoon ahead of the release of their earnings after today's market close. Let's check out the charts to see if this strength can continue.
In this daily bar chart of ISRG, below, we can see that prices have gapped to the upside today. ISRG is testing/breaking above the 50-day moving average line. The 200-day line has a positive slope and intersects down in the $293 area.
The On-Balance-Volume (OBV) line is very strong and has made a new high ahead of prices. The strength in the OBV line is foreshadowing new price highs, I believe.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal. An outright buy signal is next on the list as ISRG rallies.
In this weekly Japanese candlestick chart of ISRG, below, we see a longer-term bullish setup. Prices are trading well above the rising 40-week moving average line. Some lower shadows can be seen on recent candles if you look closely.
The weekly OBV line is very strong and supports further gains. The MACD oscillator has crossed to the downside but is well above the zero line.
In this daily Point and Figure chart of ISRG, below, we can see that the software is projecting the $393 area as a potential price target.
In this weekly Point and Figure chart of ISRG, below, we can see a price target in the $429 area.
Bottom line strategy: I have no special knowledge of what ISRG is going to report to their shareholders and the analyst community, but the charts and indicators look bullish and appear pointed much higher. Traders could go long ISRG at current levels risking to $330 for now. $393 and then $429 are our price targets.
