Sideways Stryker As It Approaches 35 Year Trend line

Stryker has been in an incredible rising channel over the past 35 years. The stock has ran into and backed off its 423.6% fibonacci extension level from the 2008 highs and 2009 lows. Long term, the stock can more than double from current levels and still be well within its rising channel.

Shorter term, the stock should consolidate sideways for the next 12 months, giving you plenty of time to slowly build a position. The company has announced the acquisition of Wright Medical for $4B, which will take time to digest. It makes sense for SYK to consolidate for the next 12 months, especially as the Presidential election season heats up, with candidates laser focused on the health care industry.

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