With the recent decline in the price of Intuitive Surgical (ISRG) and the fact that it is showing up on our most recent Nasdaq 100 Watch List (found here), we’d like to see what the downside prospects are for the stock based Edson Gould’s Speed Resistance Lines. Below is a chart of the expected conservative and extreme downside targets.
In addition to showing the conservative downside target of $288.51 and the extreme downside target of $195.22, we’ve included the SRL for the prior peak of ISRG in 2007. It is worth noting that after the 2007 peak, ISRG fell resoundingly below the conservative and extreme targets.
If for some reason ISRG were to decline below the extreme downside target by an equivalent amount as was the case in 2008, then the potential exists for the stock to fall as low as $154.79. We’re not jumping ahead of ourselves on this. For now, we’ll see if ISRG can find support at the conservative downside target at the ascending $288.51 level.
Our use of downside targets is strictly for the purpose of considering the best time to buy ISRG and not for the purpose of short selling the stock. Additionally, if downside targets are not met then we don’t engage in buying the stock.
Below is a list of all the sources that we have used to arrive at the interpretations on Edson Gould’s work. We strongly recommend that readers obtain these articles/book to supplement, enhance and refine our limited view on the topic.
-
Dines, James. How The Average Investor Can Use Technical Analysis For Stock Profits. 1974. Dines Chart Corp.
-
Du Bois, Peter C. “Talking Money”. Barron’s. Mar 18, 1974. pg. 5.
-
Frank, Judith. “Neither Bull Nor Bear?” Barron’s. May 12, 1975. pg. 11.
-
Gould, Edson. “Three Steps and Stumble?” Barron’s. December 27, 1965. pg. 3.
-
Gould, Edson. “Laggards and Swingers.” Barron’s. May 23, 1966. pg. 9.
-
Gould, Edson. “What Price Dividends?” Barron’s. February 21, 1968. pg. 5.
-
Gould, Edson. “Market Pitfall?” Barron’s. May 6, 1968. pg. 9.
-
Gould, Edson. “Summer Rally?” Barron’s . June 17, 1968. pg. 9.
-
Gould, Edson. “Daily Trading Barometer: It Signals a Market Rally”. Barron’s. February 16, 1970. pg. 23.
-
Scheinman, William X. “1966 and All That: One Stock Market Analyst Sees Some Ominous Parallels Today”. Barron’s. March 17, 1969. pg. 5.
-
Scheinman, William X. “600 on the Dow?” Barron’s. February 9, 1970. pg. 5.
-
Scheinman, William X. “May to December: The Bear Market, Says One Analyst, Will Hit Bottom This Winter”. Barron’s. August 24, 1970. pg. 5.