Let’s do some surgery on the chart of Intuitive Surgical (ISRG) and make some money! (June 01, 2018)ISRG
Intuitive Surgical ( NASDAQ: ISRG ). A volatility squeeze; this has been trading in a pretty tight range even right now after today’s breakout. These Bollinger Bands are still pretty tight, about 5 percent width, right? That is pretty tight for this stock. Every stock trades with its own characteristics; this one, when it is popping out of a squeeze, it tends to run for a ways.
What I am suggesting here is, you should get at least another 5 percent on this stock right now, up to $500.00. And you could say, “Well really, you are showing me a stock that you think has 5 percent upside?” No, I think it has more than that. I am just saying, as an early target, yes, go for 5 percent. You are buying it here at 470.00 or wherever it is and you are going to go ahead and look for that amount of money on the upside.
But, if we are looking at the bottom here of 400.00 and then the top here of 470.00ish, something like that, that is close to a $70.00 move. So we will go $70.00 more, right about here at 540.00. So that is a good target, right? I want to go (because this is just how I roll), I want to go more conservative and go just 60.00.
So right now I have got a $530.00 price target on this; a minimum measured move, which is just from here up to here again and that is really what I am looking at, about $530.00. So use $500.00, 20 points, use that as your initial reference for risk. And then what you do is put your stop right down here; give it maybe 2.5 percent room on the downside. If you are buying the stock here and it falls clear back into this channel then you can look at this and say, “Okay, it was kind of a ‘fakeout’ so I am not going to stay in the stock.”
On the other hand though, if the stock continues to move and you are in a position you can add to it comfortably once the stock starts breaking above $5.00, and maybe even earlier than that. So this is a good time to be taking an initial position in Intuitive Surgical ( NASDAQ: ISRG ).