In the Lightning Round of Mad Money Thursday night, Jim Cramer was bullish on Medtronic Inc. (MDT) . Let's take a minute or two from watching the tape at the bottom of the TV and look at the charts and indicators of MDT.
In this daily bar chart of MDT, below, we can see that prices may be at a key juncture on this chart. Prices are testing the October and November lows and testing the rising 200-day moving average line. MDT is below the declining 50-day simple moving average line and the daily On-Balance-Volume (OBV) has declined so far this month. A weak OBV line tells us that sellers of MDT have been more aggressive with heavier volume being traded on days when the stock has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line for an outright sell signal.
There are technical signs of weakness on this weekly bar chart of MDT, below. Prices are testing the rising 40-week moving average line. The weekly OBV line has declined from late September and the MACD oscillator crossed to a take profits sell signal in October.
In this Point and Figure chart of MDT, below, the program currently projects a possible downside price target of $81.74.
Bottom line strategy: MDT could survive a test of the 200-day average line but it may take more than crossed fingers.