Intuitive Surgical Is Approaching its 50 Day Moving Average

Published on Friday, 29 June 2012 08:32 Written by TradersHuddle Wire

New York, June 29th (TradersHuddle.com) - Intuitive Surgical, Inc. (NASDAQ:ISRG) ended the trading session at $536.29, near its 50 day moving average set at $545.30. Intuitive Surgical's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

Intuitive Surgical, Inc. (NASDAQ:ISRG), together with its subsidiaries, engages in the design, manufacture, and marketing of da Vinci surgical systems for use in urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. The da Vinci systems is the breakthrough platform for robotically assisted minimally invasive surgery.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $498.01 and resistance at $556.77. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Intuitive Surgical, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.