For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Geoff Martha, chairman and CEO of Medtronic (MDT) , ahead of the medical device maker's ESG investor meeting on Wednesday.
Martha said there's a lot going on at Medtronic, including a new brand refresh that will be announced tomorrow. Part of that rebranding will include a new tagline, "engineering the extraordinary," which encapsulates what Medtronic is all about.
Medtronic is at the nexus of healthcare and technology, Martha said, and there is a lot of innovation happening industry wide in the fields of robotics and miniaturization.
Medtronic is also committed to reducing global health disparities, Martha added, and the company is performing more virtual training sessions than ever to bring knowledge of their products worldwide.
When asked about areas like deep brain stimulation, Martha said they do not back away from difficult problems. They continue building technologies to listen for the brain signals that cause tremors in Parkinson's patients, for example, and disrupt them.
Let's check out the charts of MDT. We last visited MDT back on May 24 where we recommended that "The charts of MDT still look good. Longs should raise stop protection to $122. The $150-$160 area is our longer-term price objective after $137." Prices just missed our $137 target but I am hoping that traders took some profits.
Let's check on MDT again.
In this daily bar chart of MDT, below, we can see that prices have weakened the past six weeks and are testing/breaking the 200-day moving average line. The slope of the line is cresting and that can mean that the underside of the average line may act as resistance. We'll see.
The On-Balance-Volume (OBV) line shows a decline the past six weeks telling us that sellers of MDT have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory.
In this weekly Japanese candlestick chart of MDT, below, we see a weakening picture. Prices are testing/breaking the rising 40-week moving average line. The OBV line is pointed down after making a lower high for a bearish divergence when compared to the price action. The MACD oscillator is pointed down but still above the zero line.
In this daily Point and Figure chart of MDT, below, we can see a possible downside price target of $118.
In this weekly Point and Figure chart of MDT, below, a $110 price target is displayed.
Bottom line strategy: It looks like MDT will be on the defensive for a bit so traders should stand aside and let things "shake out" and then rebase.