Medtronic PLC (NYSE: MDT)

Medtronic plc manufactures and sells device-based medical therapies worldwide. It serves hospitals, physicians, clinicians, and patients. Medtronic plc was founded in 1949 and is headquartered in Dublin, Ireland.

Take a look at the 1-year chart of Medtronic (NYSE: MDT) below with added notations:

1-year chart of Medtronic (NYSE: MDT)

Overall, MDT has been trading sideways throughout the majority of 2015. With the exception of the August-September dip, the stock is right where it’s been most of the year. In addition, many times during the year MDT has hit the same resistance at around $78 (red), and it looks like the stock is headed back up to that level again now. A solid close above the $78 should lead to a significant leg higher for MDT.

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The Tale of the Tape: MDT has a 52-week resistance at $78. The possible long position on the stock would be on a breakout above that level with a stop placed under it.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach