Since reaching new 2020 highs in early September shares of ISRG have been moving sideways in a narrow range. During this three month consolidation the stock has worked off its overbought reading while straddling both sides of its 50 day moving average. As December begins ISRG appears to be back on solid ground as it puts in a third straight higher monthly low. We believe the stock is set up well for retest of the 2020 highs.
At current levels ISRG should be viewed as a fairly low risk buy. On the downside, a close back below $713.00 would violate last week’s low sending a clear warning sign that a more drawn out consolidation is ahead.
We are long ISRG in our Tactical Opportunity Portfolio