Becton, Dickinson (BDX) is a medical technology company that manufactures and sells medical devices, instrument systems and reagents. BDX’s fundamental rating was just raised by a sell firm to “Overweight” with a price target of $275. Let’s look at charts and indicators.
In this daily BDX bar chart below, we can see that prices have made an uneven advance. Prices have crossed above and below the 50-day moving average and the 200-day moving average several times over the past year. Trading volume has been declining since February. The daily On-Balance-Volume (OBV) line shows a very mild uptrend from early December. The MACD (Moving Average Convergence Divergence) oscillator is below the zero line but could soon handle a “Buy” signal.
In this BDX weekly Japanese candlestick chart below, we can see that prices are trading below the 40-week moving average. The weekly OBV line has declined for the past three months. The MACD (Moving Average Convergence Divergence) oscillator is bearish.
In this BDX daily point and pattern chart below, we can see a potential downside price target at the $203 area.
In this weekly Point and Figure chart from BDX, below, we can see the same price target of $203 as seen on the daily chart.
Basic strategy: With thousands of stocks to watch, we need to stay selective and head for positive fundamental stories with positive charts. BDX is not there yet.
Receive an email alert each time I write an article for Real Money. Click “+Follow” next to my signature for this article.