Intuitive Surgical, Inc.: Reason to be Bullish on ISRG Stock

 ISRG stockISRG Stock: Still Room to Run

I am bullish on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock because the ISRG stock chart is so compelling, strategic, and defined that it almost feels like child’s play.

I have gotten great enjoyment working with the scaling and patterns with my favorite tool, the price chart. For years now, I have used charts as my go-to tool to analyze a stock, and I have had some great successes doing so.

Discerning patterns on a chart is very subjective, and any two analysts can garner two different opinions using the  same chart. For this reason, I like to use multiple time frames to help me discern a trend. I am always on the lookout for the price point that would cause my opinion to change; this process has kept me disciplined, as it defines my risk.

The following Intuitive Surgical stock chart illustrates the dominant trend.


Chart courtesy of

The pattern on the chart above is an ascending channel. This pattern is defined by two parallel lines that define support and resistance.  The share price will oscillate between these two lines for as long as time permits. This trend ends when the price breaks out of this trading  range. Both trend lines have a positive slope, and this is what sets this channel apart from the others. As time progresses, both resistance and support continue to rise, and these patterns are suitable for investors with longer time horizons.

The following Intuitive Surgical stock chart further deconstructs this current trend.


Chart courtesy of

The chart above illustrates the different stages that mark the overall trend. ISRG stock has multiplied in value, but the surges higher in price have been sparse. Much of trading on the chart above has been spent backing and filling within the consolidation waves. Each and every time an impulse wave has ended, a consolidation wave has taken the share price back to retest a previous level of support.

What this means is that, at some point in time, it can be reasonably assumed that the level of support at $550.00-$600.00 will be tested in the future, just as all previous levels of support have been tested after an impulse wave has terminated.

This is why it always pays to be on the right side of a trade. There have been years in which serious draw-downs have affected a portfolio’s performance. Poor performing years for ISRG stock were 2006, 2008, 2010, and 2013. It it not always easy to sit through such pullbacks but, as long as the overall trend remains intact for ISRG stock, some solace remains for the bulls.

It pays to closely watch the trend that defines the impulse wave, as the following Intuitive Surgical stock chart illustrates.


Chart courtesy of

The ISRG stock chart above uses a smaller time frame in order to view the smaller trend within the overall larger trend. I have already discussed the problems with large trends and the draw-downs that occur. Defining theses smaller waves allows me to participate in the aspect of the trade that I am trying to capture. If I can capture only the Impulse waves, then my multitude of gains will increase exponentially.

If I do not enter Intuitive Surgical stock at an opportune moment, time will eventually heal that wound because the slope of the dominant trend is up. I want to reiterate that, as long as this trend remains intact, the impulse wave remains in full force, and the target of this impulse wave is defined by the upper level of resistance measured by the longer-term ascending channel.

The chart above is useful in defining my risk. If the support line on the ISRG stock chart is broken to the downside, I would use this as a signal to exit the trade. A weekly close below the trend line would signify that the current impulse wave has ended its run. I would then look for the longer-term support to re-enter the trade.

The Bottom Line on Intuitive Surgical Stock

I am bullish on ISRG stock because the charts give me all the reason I need to be. I an enamored by the longer-term trend, and this stock’s habit of continuously repeating trading behavior should not be overlooked. My bias on Intuitive Surgical stock will remain bullish until the charts give me reason to be otherwise.