• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Technically Attractive Masimo Looks Ready for a Rally Back to the Highs

Traders could go long Masimo at current levels and on strength above $113.
By BRUCE KAMICH
Dec 12, 2018 | 03:00 PM EST
Stocks quotes in this article: MASI

For his "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer sat down with Joe Kiani, CEO of Masimo Corp. (MASI) , a maker of patient monitoring equipment. The share price of MASI is up 30% for the year and 286% over the past five years. Kiani said that opioids remain a leading cause of death in our country and Masimo's new patient monitoring equipment aims to eliminate the "dead in bed" phenomenon where patients fall asleep and never wake up. What is not new is technical analysis which dates back to the 1880's in the U.S. and the 1740's in Japan. Let's check out the charts.

In this daily bar chart of MASI, below, we can see an interesting set up with the charts and indicators. MASI has recently been trading between the rising 200-day moving average line and the declining 50-day average line. MASI successfully tested the 200-day line a number of times but only now is MASI testing the 50-day line. Based on this observation, the path of least resistance for MASI is up. The daily On-Balance-Volume (OBV) line shows a positive trend for the year but a dip in October and steady movement in November and December. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned up for a cover shorts buy signal in late November and is approaching the underside of the zero line.

In this three-year weekly bar chart of MASI, below, we can see that prices are up three-fold over the past three years. MASI is trading above the rising 40-week moving average line. The weekly OBV line shows a long-term uptrend but has been flat/neutral the past two months. The weekly MACD oscillator crossed to a take profits sell signal in October but the two moving averages that make up this indicator have begun to narrow. A new buy signal could develop in the near future.

In this Point and Figure chart of MASI, below, we can see an upside price target of $133.20. A trade at $113.10 should be a double top breakout.

Bottom line strategy: MASI held above support in the $100 area and has successfully tested the rising 200-day line. Traders could go long MASI at current levels and on strength above $113. Risk a close below $104 and target the $125-$133 area on the upside.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Technical Analysis | Health Care Equipment & Services | Executive Interview

More from Investing

Don't Shout 'V' for Victory, Yet

James "Rev Shark" DePorre
Jun 27, 2022 4:22 PM EDT

Even after last week's move higher and Monday's narrow range of movement, we can say it's going to be difficult to produce a 'V'-shaped setup like we had at the pandemic low in 2020.

Let's See If Vertex Pharmaceuticals Can Push Higher on the Charts

Bruce Kamich
Jun 27, 2022 3:03 PM EDT

Here's what traders should do.

LyondellBasell Could Hold Temporarily Before Renewed Declines

Bruce Kamich
Jun 27, 2022 2:22 PM EDT

Let's take a look.

Kass: Why Markets Could Make a Yankees-Like Comeback

Doug Kass
Jun 27, 2022 2:00 PM EDT

I remain uncharacteristically bullish. Here's why.

Here's How to Treat Bristol-Myers Squibb's Charts

Bruce Kamich
Jun 27, 2022 1:10 PM EDT

BMY is breaking out to a new high.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login