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Are Danaher Shares Poised for a Rally?

Keep this stock on your watch list.
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Life sciences company Danaher Corp (DHR) posted a fourth quarter earnings beat Tuesday morning but the stock is under selling pressure. Let's check the charts and indicators.

In this daily bar chart of DHR, below, I see a wide-ranging sideways trend the past 12 months. Prices have crossed above and below the 50-day and 200-day moving average lines a number of times. DHR is currently testing the 50-day and 200-day average lines.

The daily On-Balance-Volume (OBV) line has moved sideways since June. The trend-following Moving Average Convergence Divergence (MACD) oscillator has moved above and below the zero line for the past year.  

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In this weekly Japanese candlestick chart of DHR, below, I see a mixed picture. Prices are moving sideways but have managed to climb above the 40-week moving average line.

The weekly OBV line shows long-term weakness with a decline in place from the middle of 2021. The MACD oscillator has improved and is close to crossing above the zero line for an outright buy signal.

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In this daily Point and Figure chart of DHR, below, I see that the software is projecting an upside price target in the $343 area. A trade at $284 or higher is needed to refresh the uptrend. 

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In this weekly Point and Figure chart of DHR, below, I see a similar picture as the daily chart above.

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Bottom line strategy: I would keep DHR on your watch list, and let's keep watching it for stronger signs that a rally is poised to get going.

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