Here’s your trade on Intuitive Surgical ($ISRG) – July 31, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at Intuitive Surgical ( NASDAQ: ISRG ) today.
First of all, healthcare is, generally speaking, doing pretty well. Intuitive Surgical ( NASDAQ: ISRG ) was one of the better performers today. Earnings are not an issue, they’re already out so we don’t have to be concerned about any big old catalyst coming to knock the trade out.
I’m looking at this now as a potentially really good swing trade. The way you do that is, you look here and say, the last time this was below the 50-day moving average, that lasted a good long time, like for a cup of coffee. Then since that time, it hasn’t even been back to it.
And so what I would be doing here is saying, all right I’m going to go ahead and count on this rebound as having some legs, and maybe even get me back up here. I’m going to put in a stop right below the 50-day moving average, somewhere like that. So your actual risk on this trade is less than 4 percent and you’re looking to be making at least 6 percent, maybe more.
If you’re framing your trade like this it’s one way that you can get in on good swing trades with minimal risk. I’ll share something with you that might even be a little bit more compelling for this. And that is, forget about the 50-day moving average, I don’t care about that. You can put it below today’s intraday low of 432.40, that way you’re risking less than 3 percent, about 2.7 percent.
If you’re trying to put it any tighter than that, I know, I’ll put it just below today’s open. Don’t do that because the stock gyrates around a lot. Probably the best way, if you want to just ignore the 50-day moving average is to look at the prior day’s intraday low, 431.56. You put your stop right down there and you’re going to be able to get a pretty good entry on the stock. And then at the end of the day, my bet is, you are going to wind up making some money.
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