Danaher Corp. (DHR) has been "chopping sideways" the past four months but it now looks poised for an upside breakout in the weeks ahead. Let's go over the charts and indicators for a good entry point and risk level.
In this daily bar chart of DHR, below, we can see that prices have improved from late December. Prices may have briefly broken the late October lows but they did not start a new leg lower.
Looking closer at the trading this month we can see that prices are above the rising 50-day moving average line and the slightly rising 200-day line.
The daily On-Balance-Volume (OBV) line has been moving sideways the past few months but it has also improved from its December low.
The OBV line is close to breaking its November peak and suggests to me that buyers of DHR have turned more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has turned back above the zero line this month for an outright go long signal.
In this weekly bar chart of DHR, below, we can see a three-year rally. Prices have been consolidating for several months now and the indicators are getting ready to point the way higher. DHR is trading above the rising 40-week moving average line.
The weekly OBV line declined modestly for three months and now looks to be turning up once again.
The weekly MACD oscillator has crossed to the upside from above the zero line for an outright go long signal.
In this Point and Figure chart of DHR, below, we can see a year-long consolidation pattern. The software projects an upside price target of $121 and a trade at $110.87 will be a triple top breakout.
Bottom line strategy: DHR is just a few dollars away from a major upside breakout. Aggressive traders could go long or add to longs at current levels. Add on strength above $111. Risk a close below $102 for now and look for gains to the low $120's.