This coming Thursday we will get more earnings reports and Jim Cramer narrowed down the list for his Mad Money viewers on Friday night. One Cramer favorite is Medtronic (MDT) . Let's check out the charts.
We looked at MDT back on January 12 and wrote that "Traders should wait for strength above $120 before probing the long side. Risk below $115. The $156 area is the price target for 2021." Let's see how things look today.
In this updated daily bar chart of MDT, below, we can see that MDT finally broke above $120 in April. Prices are trading above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line broke out to new highs in April and May to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator has narrowed and is poised to cross to the upside to a new outright buy signal.
In this weekly Japanese candlestick chart of MDT, below, we see a positive picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line and the MACD oscillator are constructive.
In this daily Point and Figure chart of MDT, below, we see an upside price target in the $137 area.
In this weekly close only Point and Figure chart of MDT, below, we can see that $154 is a longer-term price target.
Bottom line strategy: 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.
