• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Medtronic Is Edging Closer to an Upside Breakout on the Charts

No one knows their business as well as the CEO.
By BRUCE KAMICH
Jun 06, 2019 | 12:43 PM EDT
Stocks quotes in this article: MDT

Sometimes CEO's deserve the benefit the of the doubt, Jim Cramer reminded viewers on Mad Money. So many times the analysts get it wrong, he said, but no one knows their business as well as the CEO.

Case in point, Medtronic ( MDT) , which got clobbered in January on negative analyst comments. But on January 8, Cramer sat down with the company's CEO and learned their product pipeline had never been stronger. Shares have since rallied from $82 to $96 after a strong quarter that included raising their full-year guidance. Let's see what the charts show up now.

In this daily bar chart of MDT, below, we can see a number of bullish developments. MDT made a low in January and a successful retest in April. Last month prices gapped to the upside above the bottoming 50-day moving average line and then shortly after that MDT closed above the flat to rising 200-day line.

Recently prices move above the February-March highs and are now within "striking distance" of the September/December peaks.

The daily On-Balance-Volume (OBV) line has been in an uptrend the past 12 months and recently made a new high for the move up.

The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line last month for an outright go long signal.

In this weekly bar chart of MDT, below, we see a mixed picture. Prices have made higher lows the past three years but it has been several months since the last high high. MDT is above the 40-week moving average line which is poised to turn positive.

The weekly OBV line has been in a decline from September which suggests that sellers have been more aggressive. A stronger or rising OBV line would help the technical picture.

Last month the weekly MACD oscillator crossed to the upside from below the zero line for a cover shorts buy signal. Further strength in the MACD indicator would give us an outright buy signal.

In this Point and Figure chart of MDT, below, we can see a $108 price target but trades at $98.39 and $99.37 are needed to confirm the uptrend.

Bottom line strategy: MDT has some technical positives going for it but it still needs to clear the $98-$100 area.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Markets | Stocks | Technical Analysis | Trading | Health Care Equipment & Services

More from Investing

Rotation Is No Reason to Turn Away from the Markets

James "Rev Shark" DePorre
Jan 21, 2021 4:45 PM EST

Bears may fuss over the routine consolidation combined with rotational action, but here's how I look at the moves.

Jim Cramer: Housing Is Our Bridge

Jim Cramer
Jan 21, 2021 3:59 PM EST

Do not fear the housing sales boom -- this is good news and I'll tell you why.

Cord-Cutting FuboTV and Advertising Platform PubMatic Are Not Buys Here

Bruce Kamich
Jan 21, 2021 2:59 PM EST

Our look at the stocks of both FUBO and PUBM.

Jim Cramer: You Just Won Powerball, Now What?

Jim Cramer
Jan 21, 2021 2:24 PM EST

Remember, you only need to get rich once.

Here's the Beast and Beauty of Investing in Disney Now

Bruce Kamich
Jan 21, 2021 1:54 PM EST

DIS might suffer a pullback in the next several weeks, but longer-term a rally is possible, according to the charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • 08:35 AM EST GARY BERMAN

    Thursday Morning Fibocall for 1/21/2021

    SPX (Long-Term View) The 1/20/21 NEW high @ 3859...
  • 11:38 AM EST CHRIS VERSACE

    Best Stocks to Buy for the Biden Presidency

    President-elect Biden's massive stimulus plan, int...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login