NFTRH+; Waters Corp.

As long as the broad market remains intact and the rationale for a relative bull view on Medical Devices does as well, I’ll highlight a few of these companies when I see technical situations that look good.

Waters, another former customer of mine from so far back in ancient history my anecdotal recollections are virtually useless, has a nice looking setup.  Here is the company’s website if you’d like to check it out.  Of note, WAT is 2.18% of the (IHI) Medical Devices iShares ETF’s holdings.  Here is the totality of its holdings…

ihi holdings

The daily chart of WAT is simple enough.  A bottom pattern would be actualized with a break above 142 and then the SMA 200 at 144.  MACD is constructive and RSI is good.

wat daily chart

The weekly shows that this pattern has formed at a significant support area.  MACD and RSI have not been turned positive, however.  The EMA 20, which has served as intermediate support and resistance over the years, corresponds with the 142 noted above.  So if WAT could break above it and hold it on a weekly close that would be a good thing.

wat weekly chart

Anyone who agrees with me about the macro prospects for the Device sector and has looked closer at Waters fundamentally and found it favorable might want to keep an eye on this one.  Since I am personally engaged with the sector’s fundamentals I may buy this one where it is.  I have not decided yet because I am getting too bulked up on stocks and may need to see what I can move out in order to make room.  But traders might follow these general guidelines…

Buy Target:  A weekly close above 142 or 144.

Sell Target:  150, although higher levels are surely possible if the market is stable and the sector’s funda start to bear fruit this year.

Stop Loss:  Below 134 to suit risk tolerance.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.