Will it Deal With Carlyle Shift Trend?

At the end of May 2023, Medtronic’s (MDT) stock price entered a bullish trend, rising from the support level of $80. The stock price attempted to rise above the annual high of $90.53. However, the bullish move was discontinued when the price reached near $90.23. MDT stock price faced strong rejection above $90, which induced a negative sentiment in the market.

Medtronic’s stock price melted strongly and broke the support level from the initial bullish rally, which is $80. Currently, the stock price has formed a support at $78. The last candle closed bearish and broke the support of $78 but was unsuccessful in closing below it.

If bears push the price below the recent support of $78, it might melt down toward the next support level of $76 and potentially toward the $74.30 region. On the other hand, if bulls can push the price above $84, it might rise toward the annual high of $90.53 and resistance level of $90.30.

Simplera Continuous Glucose Monitor Gets CE Mark

On September 21, Medtronic obtained CE Mark approval for its new disposable Simplera continuous glucose monitor. Medtronic stated that the new glucose monitor collaborates with InPen, an intelligent insulin pen that offers dosing guidance for diabetic patients.

The US Food and Drug Administration (FDA) has yet to approve Simplera, while the company’s automated insulin delivery system is still under review for CE Mark, Medtronic added.

Discussions are happening between Carlyle, a private equity firm, to buy a majority stake in two of Medtronic’s medical device businesses worth more than $7 Billion. Carlyle, one of the world’s biggest private equity firms with $385 Billion in assets under management, is a prolific investor in the healthcare sector.

Will MDT Stock Price Melt Below $78?

The stock price has fallen below 20, 50, 100, and 200-day exponential moving averages, suggesting a strong confluence of bears over the price. The 50-day EMA has been acting as a resistance to the price.

The Chaikin money flow score has been trading below the 0 mark since July 31 and currently stands at -0.18, indicating weakness and capital outflow from the market. The relative strength index has melted below the 40 mark and stands at 36.47, implying bears’ strong presence and participation in the market.

Conclusion

Technical parameters currently favor the selling side, but traders should wait for the price to break and close below $78. The market structure and price action show a strong confluence of bears over the price.

Technical Levels

Support Levels: $76 and $74.30

Resistance Levels: $84 and $90.30

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing