One of the most interesting things about new IPO stocks is how they behave technically. Some stocks soar and plummet all in the first six months. This particular stock Teladoc (TDOC) did too. It soared on the opening day and worked itself higher for one month, almost doubling. Then it let it all go and dropped well below the IPO price of $19. The lows came in at $9. Ouch! But since then, the stock has made a steady recovery. The reason it makes the list for this week is the chart recently broke out to all-time highs!
Technically everything is in sync. The SCTR is surging into the top quartile while the Full Stochastics are showing a move into the top 10%. What also makes this work is the price action. After hitting resistance over and over at $37.50, the stock recently soared above. The PPO has gently pulled back while being above zero and has now started to turn back up to the upside.
All that to say, the chart continues to push into the top right corner.
What does Teladoc (TDOC) do? This company provides live doctors on the phone for you to call and ask questions when you need help. With 20 million customers, they are really starting to accelerate! This is ringing more than the phone. It is also ringing the investor cash register!
Good trading,
Greg Schnell, CMT, MFTA
