An upgrade from Morgan Stanley (NYSE:MS) is giving shares of Medtronic PLC (NYSE:MDT) a healthy boost today. MDT was up more than 2.5% at midday and is heading for its best close since mid February. This powerful move is driving the stock through the upper band of a bull pennant that has been in place since the Nov. 9 ‘vaccine’ surge (+9.3%). Despite a solid earnings report late last month, this narrow consolidation pattern has remained intact.
We believe MDT is setting up well to re-test of the all-time highs set back in January. Following today’s news inspired breakout move we consider MDT a fairly low risk buy near current levels.
On the downside, a close back below $110.00 would violate last week’s low, sending a clear warning sign that a more drawn out consolidation is ahead.
Note: We hold no position.
You can read Gary S. Morrow's original post here.