May 21 Chart of the Day - Medtronic
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Medtronic (MDT) beat on earnings and unveiled plans to spin off its diabetes unit into a standalone company — but the market wasn’t impressed.
Shares slid 2% in after-hours trading, raising eyebrows. Did traders just shrug off the news… or are they seeing something management isn’t?
We’ll break down the price action and let the chart do the talking.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 500+ Charts of the Day and provide FREE Price Action Trading education to traders who join our highly rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $135.89 all time high price back in 2021 price initially fell significantly but has drifted sideways the past several months.
Currently, price has formed what many may considered a "bear flag" pattern.
A bear flag pattern is a bearish continuation setup that forms after a sharp downward move (the "flagpole"). It features a brief upward or sideways consolidation (the "flag") that slopes against the prevailing trend. When the pattern breaks down, it often signals another leg lower, continuing the original downtrend. Traders watch for high volume on the breakdown to confirm momentum.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, we can see with much more clarity the volatile cycles up and down while carving out a channel.
Most recently price slumped back down from the $97 level to the $84 area.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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