Mussallem said that 2020 has been a very challenging year for medical device makers. When COVID-19 first hit, hospitals stopped all elective procedures to make room for the pandemic. But as we learned more about COVID, procedures gradually reopened, only to find patients are now too scared to reenter the healthcare system. Despite the tough times, however, Mussallem sees the end in sight as vaccine production begins in earnest.
Edwards Lifesciences continues to be laser-focused on its patients, Mussallem said. It continues to advance the technology, invest heavily in research and development, and serve those patients who are being underserved.
Let's check in on the charts again. The last time we looked at EW was back on June 4, when we wrote, " The charts of EW are constructive, but prices need to push up into resistance to signal that a breakout is possible. A strong close above $79 -- the halfway point of the resistance zone of $76-$82 -- should be enough strength to result in a breakout to new highs. Traders should wait for the close above $79 before going long."
In this updated daily bar chart of EW, below, we can see that prices have rallied into the $85-$90 area several times over the past four months. EW is trading above the rising 50-day moving average line as well as the rising 200-day moving average line.
The trading volume has remained steady and not weakened the past few months suggesting that buyers are still interested. The On-Balance-Volume (OBV) line made a new high in November, hinting at higher-price highs to come. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory and poised to turn up or down with the price action.
In this weekly bar chart of EW, below, we see a positive picture. Prices are in a longer-term uptrend. The slope of the 40-week moving average line is positive. The weekly OBV line shows gains from June and the MACD oscillator gave a new buy signal in November.
In this daily Point and Figure chart of EW, below, we can see that a trade at $88.19 is an upside breakout. A price objective of $104 is being projected from the "count".
Bottom line strategy: Continue to hold any existing longs and consider going long or adding to longs above $88.19 -- a new high on the daily Point and Figure chart (above). Risk $79 for a sell stop. The $104 area is our price target for now.