Opinion on  Intuitive Surgical Inc (ISRG)     Sector: Healthcare  >  Industry: Medical Equipment & Supplies
ISRG Will Shine

Intuitive Surgical (ISRG) is a fundamentally sound company and is a great performer this year. It is also #2 on IBD's list and has been moving through the ranks over the past couple of months. ISRG is only 7.2% below its all-time high and seems to be making an ascending triangle pattern that should help it move higher with some more time. The company boasts 34% pretax margins, which contribute to its EPS growth of 111% last quarter and an estimated 75% for Q4. Sales also increased by 64% last quarter.

Explanation of technicals from my chart:

• The stock formed a tight ascending triangle, which it broke out of on stellar earnings back on the 18th of October.
• The explosive breakout was short-lived, due to bad market conditions that kept pounding the stock lower.
• The stock received good buying support from the 50-day moving average and from the lower boundary of the previous ascending channel.
• As you can see the stock has been climbing out of the correction with little consolidation bases, but last week's tumble sent the stock back to receive support from the 50-day MA / lower channel boundary.
• The MACD has taken a turn recently, as long as the stock price. Both are headed up.
• I see this stock possibly taking a rest sometime here and then making another break for the upper trend line I have drawn that's part of this ascending triangle-type pattern.
• Buy point would be when the stock clears $360.5 on heavy volume and good market conditions.