Here’s how we’d play the stock of this pet healthcare name.
By BRUCE KAMICH
Stocks quotes in this article: IDXX
IDEXX Laboratories (IDXX) offers biological materials testing, laboratory animal diagnostic services, and analyzers for veterinary and human health.
Now, let’s fetch the charts and indicators.
In the daily bar chart of IDXX, below, I see a base pattern and an upside breakout and rally. Prices based in the May-October time frame. A rally began in October with an upside breakout in November as the shares broke out above the highs of August. IDXX is trading above the rising 50-day moving average line after a successful test of the line in December. The slope of the 200-day moving average line is starting to bottom.
The On-Balance-Volume (OBV) line is showing strength in January after a long sideways move from May. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but shows some narrowing that needs to be monitored.
In the weekly Japanese candlestick chart of IDXX, below, I see a positive-looking picture. The shares are trading above the bottoming 40-week moving average line. The latest candle pattern is a doji so we need to see if there is bearish confirmation this week or whether the uptrend gets refreshed.
The weekly OBV line has been improving since October. The MACD oscillator has crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of IDXX, below, I can see that the shares have reached and exceeded an upside price target in the $475 area.
In this weekly Point and Figure chart of IDXX, below, the software is projecting the $699 area as a potential price objective.
Bottom-line strategy: Traders could probe the long side of IDXX on a pullback to the $470 area. Risk to $430. The $560 area is our price target for now.
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