Last up on our list of health care trades is Medtronic (MDT), a $40 billion medical device company. Medtronic had been looking bearish since the start of the year, tumbling more than 5% by the start of June as shares bounced inside a downtrending channel. But a channel breakout in this medical stock points to higher ground getting hit in the second half of the year.
Medtronic broke out of its downtrending channel on Friday, taking advantage of momentum in the rest of the healthcare sector. The breakout puts MDT's primary trend back in "bull mode," signaling a buying opportunity for traders who want to get ahold of the new trend early. The fact that MDT is within a handle of a new 52-week high is another big factor in this stock's upside -- a breakout above February's peak should shove some extra demand behind shares.
Momentum, as measured by 14-day RSI, broke its down downtrend in the middle of June, adding some extra support for a new uptrend. Since momentum is a leading indicator of price, that's a good sign that MDT is in for more upside in July.I also featured Medtronic recently in " 5 Blue-Chip Stocks Ready to Boost Dividends." To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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