Per the Trade Log I added back former holding MDT for its status as a large component of IHI (Medical Device iShares), it’s status as a Healthcare stock (more defensive) and for its daily and weekly charts.
While IHI is breaking above its Q4 2018 high, MDT – a known large cap sector laggard mind you – is far from its Q4 high. I checked it out yesterday as it dealt with the intersection of the SMA 50 & 200. Today is is popping over it, although the volume is not compelling in the least. A caveat.
But I like the daily chart’s combo with the weekly chart. You may recall the bullish Ascending Triangle we managed last year with its target of around 97. I of course took the profit too soon but it was a good trade because I had bought near the lower Triangle line. The market troubles of Q4 brought MDT back down to test the Triangle and if the daily above stays intact (not to mention the stock market and/or this sector), I see no reason MDT could not make it back to target #1 at least.
My personal stop loss would depend on what I see in the stock market and its leading sector, Medical Devices. But I’d love to see the SMA 50 & 200 hold on the daily chart above. That would of course be too easy, so I’d like to see short-term support between 88 and 89 hold for sure.
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 your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.