This Mid-Cap Health Care Stock Could See 20% Upside From Here
Let me show why I'm optimistic about the shares of this medical devices manufacturer.
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Merit Medical Systems, Inc. MMSI is a manufacturer and marketer of "proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy." Unfortunately at my age I am seeing more and more of their products.
Let's check out the charts and indicators of MMSI.
In the daily bar chart of MMSI, below, I can see that prices have moved from the lower left of the chart to the upper right of the chart — an uptrend. MMSI is trading above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows us a rising pattern the past 12 months to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the second chart, below, I use weekly Japanese candlesticks to gain a different perspective. Prices have trended higher the past 2-1/2 years. Prices trade above the rising 40-week moving average line.
Trading volume has been increasing the past eight months and supports the idea of continued gains. The OBV line has shown good strength since March. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of MMSI, below, I can see an upside price target in the $110 area.
In this second Point and Figure chart of MMSI, below, I used weekly price data. Here it also shows us a price target in the $110 area.
Bottom-line strategy: Aggressive traders could probe the long side of MMSI at current levels risking to $85. The $110 area is my price target.
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