For his "Executive Decision" segment on the Mad Money program Monday evening, Jim Cramer checked back in with Jason Gorevic, CEO of Teladoc Health (TDOC) , the telemedicine provider with shares up 18% in Monday's session.
Gorevic said the U.S. healthcare system is under strain and Teladoc is doing everything it can to help. The company is offering virtual Covid-19 clinics to train healthcare workers on proper procedures and is bringing their virtual services to hospitals to help keep on-site personnel out of harm's way. Teladoc is also providing thousands of virtual appointments every day to help keep non-critical patients away from crowded waiting rooms.
Teladoc is also stepping up its mental health services, Gorevic noted, helping members cope with the stress of the pandemic and isolation.
Let's check on the charts and indicators to see how far this rally could carry.
In this daily bar chart of TDOC, below, we can see that prices have nearly tripled from the long base pattern around $60 in early 2019. Prices have turned up strongly in a weak broad market showing its superior relative strength.
The slopes of both the 50-day moving average line and the 200-day moving average line are positive. The trading volume has increased significantly in the past three months telling us that there is a strong commitment to the long side.
The daily On-Balance-Volume (OBV) line has been rising the past 12 months, telling us that buyers of TDOC have been more aggressive for a long time and not just in recent weeks.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just turned up to a fresh outright go long signal.
In this weekly bar chart of TDOC, below, we can see the past three years of bullish activity. Prices are up more than five-fold from their 2017 base. The 40-week moving average line is bullish. Trading volume is bullish as it expands in the direction of the trend.
The OBV line is bullish and the MACD oscillator rounds out the bullish set up.
In this Point and Figure chart of TDOC, below, we used daily price data to construct the chart. The accumulation pattern yields a potential upside price target in the $265 area. Point and Figure charts ignore volume and time so we do not know when this target might be reached.
Bottom line strategy: TDOC is in the driver's seat with a strong technical picture and much higher price targets as investors search for opportunities to benefit from our stay at home environment and growing need for medical attention. Seasoned traders can approach the long side of TDOC at current levels and any one-day pullback. Risk below $130. $200 and then $265 are the potential targets.