EARNINGS: 21 Jan 2010 AMC (After Market Closes)
The upper trendline runs approximately at 333 around Jan 21st, the middle trendline runs approximately at 280. and the lower trendline runs approximately at 240.Fib retracement levels are from March 2009 low to a HYPOTHETICAL high of 335
Hi PRAM,
ReplyDeleteI had a look at this and the charts were very interesting as well as very strong.
On the weekly I was seeing a lot of evidence that this stock channels very strongly:
http://www.screencast.com/users/springheel_jack/folders/1001/media/597d0793-4b72-4539-a967-094728df8f4c
The current uptrend channel looks very strong and I would see the key resistance at the two lines above on the red channel, at slighly above 320 and slightly above 340.
The key test will be at the upper line I think, and I have something to add there that I haven't marked on the chart. Consider how much that whole price movement looks like a building IHS, with the neckline at the upper line. If this continues to develop, I would expect a failed test of that upper red channel line, a retracement to perhaps the 260 to 300 level, and then a return to complete the RS. Just a hypothetical possibility at this stage, but nonetheless a real one.
I haven't read up in detail on ISRG, but what I have read suggests that it might have a very bright future indeed. That IHS could play out, I'll certainly be following progress on this one.
On the daily chart I have ignored the channels altogether to focus on something else interesting on the chart, which is a very strong fan:
http://www.screencast.com/users/springheel_jack/folders/1001/media/597d0793-4b72-4539-a967-094728df8f4c
This is very useful to have as it gives us key support levels and tells us that in the event that my IHS scenario has legs, then we are unlikely to see a retracement below fanline support before that upper red trendline on the weekly is reached. If fan support is breached on a daily close basis then it might be time to reconsider this as a long. As long as it is not breached then it puts a solid floor of support under this stock at the 300 level.
On the histogram it looks like a trip neg div has set up. Will look to short next week.
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