Medtronic (MDT): 2018’s Version of Edwards Lifesciences (EW)?

Last year we highlighted EW weekly in the NFTRH+ Charts & Notes segment, beginning before it broke out from a nice Ascending Triangle. Here is a public post that came after the breakout…

EW Ascending Triangle Expresses Itself

Okay fine; I’ve long-since taken the profit on what I consider a richly valued stock in an over valued sector.

But MDT is more reasonably valued and had been traded off and on until we ID’d yet another Ascending Triangle, which held my interest over the last several months. Here’s the daily chart showing a nice Cup & Handle with an implied target in the 95 to 100 range.

mdt

But that is a new thing. The older thing is the weekly Ascending Triangle, which also measures to the same target as above since the last Triangle touch point was the Cup’s bottom. The Triangle broke out a couple weeks ago and this week may be confirming.

I maintain that the suits in well appointed offices have put the promotion on Medical Devices in a similar way they did 3D Printing and every other thing they pump without actually getting on the shop floor. But we’ve been bullish on Medical Devices for the last few years and the market being the market, it is right. The sector is bullish and the old dinosaur, MDT, as of this writing is bullish too.

The thing this sector does have going for it, based on my hands on experience, is its relative immunity to economic cycles. But ongoing business and stock valuations are two different things. So anyway, I am bullish on MDT and as long as the stock market holds up see no reason it cannot make target. Unless of course it is in a 3 week (and counting) bull trap, which doesn’t appear to be the case.

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