In his Executive Decision segment of "Mad Money" Wednesday, host Jim Cramer spoke with Michael Mussallem, chairman and CEO of Edwards Lifesciences Corp. (EW) , which is just off the company's annual analyst conference.
It has been 10 years since TAVR, the Transcatheter Aortic Heart Valve Replacement, was first approved in the U.S., but since then, Mussallem said, the procedure has only gotten better. He said Edwards has made the device smaller and reduced complications, resulting in better patient outcomes.
That's why Edwards is forecasting double-digit sales growth in 2022 and why it is doubling down on research and development. The company is also adding more clinical trials to prove to doctors that TAVR can be used earlier and in more patients than at present.
Edwards is also innovating with smart recovery technology that continuously monitors patients after surgery and can predict low blood pressure events before they occur, the CEO said.
Let's check out the pulse and the pressure of the charts and indicators.
In this daily bar chart of EW, below, we can see that prices made a strong rally from March to September but the trend shifted to a sideways pattern from August. EW has been trading around the 50-day moving average line and is currently above this line as well as the 200-day line. The daily On-Balance-Volume (OBV) line has already made a new high for the move up and often foreshadows or leads price movements. The trend-following Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside for a cover shorts buy signal and is not far below the zero line. Keep your eyes on this indicator to give us an outright buy signal.
In this weekly Japanese candlestick chart of EW, below, we can see a longer-term uptrend going back at least three years. The slope of the 40-week moving average line is positive and prices are above it. The weekly OBV line shows some softness the past four months as prices traded sideways to slightly lower. The MACD oscillator turned lower in September but has begun to narrow toward a new outright buy signal.
In this daily Point and Figure chart of EW, below, we can see two important clues. First, prices have met a downside price target. Second, a trade at $122.47 should refresh the uptrend.
In this weekly Point and Figure chart of EW, below, we used close-only price data and a five-box reversal filter. Here the software is projecting a potential upside price target in the $167 area.
Bottom line strategy: Traders could go long EW on strength above $122.50, risking a weekly close below $115 -- the middle of the long white (bullish) candle on the chart above. The $167 area is our price target.