Filed Under:
Tickers in this Article:
MDT has experienced a string of 10 consecutive down days and is now testing the support of a long-term trendline. As illustrated by the white arrows in the chart below, the support of the trendline has propped up the price of the shares several times over the past 15 months. Technical traders may anticipate that the bearish price action will come to an end, and they will probably start taking a long position in anticipation of a bounce off the trendline.

In the chart below, we've also added the RSI, which has recently crossed below 30. This sign could be used by the bulls as an indication that MDT is becoming oversold and may be due for a correction. Notice how the combination of a close near the trendline and an RSI value below 30 has proven to be a very reliable entry strategy for the bulls over the 15 months.

comments powered by Disqus
Trading Center