$MDT entered a “Go” trend late January of this year.
Since then, we saw the medical equipment stock make successive higher highs. After the high at the very end of January however, we saw a Go Countertrend Correction Icon (red arrow) indicating that price may struggle to go higher in the short term. This was indeed the case as price fell from the high and GoNoGo Trend painted weaker aqua bars. When that high was tested mid February, we saw that it acted as resistance and price fell sharply to lower levels. The “Go” trend was not broken, even as GoNoGo Oscillator fell through the zero line into negative territory. Price climbed steadily, and when the oscillator rose to test the zero line from below we saw a GoNoGo Squeeze build, highlighting the struggle from momentum. When the squeeze was broken into positive territory, we knew that momentum was once again resurgent in the direction of the “Go” trend. This gave price the push it needed to break above resistance and to new highs. With GoNoGo Trend painting strong blue bars, we will look for price to consolidate at these higher levels and use prior resistance as support going forward.
