ISRG Daily Chart: Anticipating a Bounce from Key Demand Zone Overview:
ISRG has been in a recovery phase since its lows in early April, establishing an upward trend. However, after hitting significant resistance in May, the stock has entered a corrective pullback. This chart outlines a potential long setup, waiting for a strategic entry at a confluent demand zone.
Key Observations & Levels:
1. Post-April Recovery: Following a sharp decline, ISRG initiated a strong recovery in early April, demonstrating clear higher highs and higher lows (represented by the initial green zig-zag line).
2. Supply/Resistance Zones (Red Boxes):
o Upper Resistance (600 - 620): This zone represents a significant overhead supply from previous highs in February/March. It is the primary target for any significant bullish move. The chart specifically highlights "Target 600" (601.23).
o Intermediate Resistance (550 - 570): This zone acted as strong resistance in May/early June, leading to the current pullback. Price failed to sustain above this level, signaling a need for a deeper correction before a sustained push higher.
3. Demand/Support Zone (Green Box: ~480 - 500):
o This is the critical "buy zone" highlighted on the chart. It aligns with previous support levels and a potential area where strong buying interest emerged. The chart specifies an entry point around 488.77. This is where we anticipate buyers to step in and reverse the current short-term bearish momentum.
4. Current Price Action & Potential Path (Dotted Line):
o ISRG is currently trading around 512.82, in a clear pullback from the intermediate resistance. The dotted line indicates a possible path where the price might consolidate or even attempt a small bounce before ultimately heading lower to tag the key demand zone. This suggests a patient approach, waiting for the price to reach the optimal entry area.
Trade Plan:
This setup is based on the anticipation of a strong bounce from the defined demand zone:
• Entry Zone: Wait for price to enter the 480 - 500 demand zone. The chart's proposed entry is precisely at 488.77.
• Stop-Loss: A tight stop-loss is placed below the demand zone at 457.71. This level represents a clear invalidation point for the bullish thesis, as a break below it would indicate further downside pressure.
• Target: The primary target for this long setup is the 600 - 620 overhead resistance zone, specifically marked at 601.23. This offers a favorable risk-to-reward ratio.
Scenario:
The most probable scenario outlined is that ISRG will continue its current correction, potentially with some minor bounces, until it reaches the strong demand zone between $480 and $500. From there, we anticipate a significant rebound, aiming to challenge the $600 target.
Invalidation:
A sustained daily close below $457.71 would invalidate this bullish setup, suggesting that the current downtrend is stronger than anticipated and could lead to further significant declines.
Conclusion:
ISRG presents a compelling long opportunity if it continues its pullback to the robust demand zone around
480−500. Patience is key to capturing this potential reversal for a move towards the $600 target. Always manage your risk accordingly.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
