The name Teladoc Health, Inc. (TDOC) came up in the Lightning Round on Wednesday night's Mad Money program. Jim Cramer said this to the caller - "I like Teledoc. I say buy." Let's take a few minutes to see if the charts and indicators are bullish too.
In this daily bar chart of TDOC, below, we can see a "V-like" turnaround in price at the December low. From late December TDOC has rallied back above the bottoming 50-day moving average line and the rising 200-day line. The daily On-Balance-Volume (OBV) line has a bullish message in the it was steady from October when prices peaked and turned lower. TDOC longs must have largely stayed with their positions because there is no sign that sellers became more aggressive. The OBV line has turned up from the beginning of the year and is not far from making a new high. The Moving Average Convergence divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly bar chart of TDOC, below, we can see a very impressive advance from 2016 at around $10 to a high last year above $85. Prices declined below the rising 40-week moving average line in November but prices are back above the line now. The weekly OBV line shows a generally positive trend until this past September but the line looks like it is improving again. The weekly MACD oscillator is poised to cross to the upside for a weekly cover shorts buy signal.
In this Point and Figure chart of TDOC, below, we can see that a trade at $65 will be a small double top breakout and that a trade at $67 will be a bigger breakout and should yield an upside price target.
Bottom line strategy: the price of TDOC looks like it is ready to move higher. Risk below $56 and buy strength above $65.