In his first Executive Decision segment of "Mad Money" Monday, host Jim Cramer spoke with Marc Casper, chairman, president and CEO of Thermo Fisher Scientific (TMO) , the life sciences company helping drugmakers and testing companies fight Covid-19.
Casper said Thermo Fisher is a world leader in life sciences equipment and supplies. It helped develop Covid testing and now support hundreds of millions of Covid tests around the globe.
We reviewed the charts of TMO last Nov. 4 and wrote at that time, "TMO has one of the most stable-looking uptrends around. We have a price target of $508 but further gains to the $520 area should be expected (a double from the March low). Longs should consider a stop loss order at $450, in my opinion." Prices reached our $520 target area quickly before retreating under $450. I assume traders who did not take profits at $508 or $520 liquidated their longs on our recommended sell stop at $450.
How do the charts look now?
In this updated daily bar chart of TMO, below, we can see that prices are poised to make new highs after three months of sideways consolidation. Prices are trading above the rising 50-day moving average line. The slower-to-react 200-day line is also bullish and has maintained a positive slope the past year. The On-Balance-Volume (OBV) is rising and tells us that buyers of TMO have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is turning upward for a fresh outright buy signal.
In this weekly bar chart of TMO, below, we can see a positive picture. Prices are in a long-term uptrend above the rising 40-week moving average line. Trading volume is active, but I would like to see the OBV line turn higher. The MACD oscillator is ready to turn higher.
In this daily Point and Figure chart of TMO, below, we can see a potential upside price target in the $607 area.
Bottom line strategy: If you are still long TMO, great. If you have no position now you can go long at current levels or on strength above $530. Risk a close below $500 now. The $600-$607 area is our next price objective.