Swing Trading Plan
Holding Period
1-6 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
MDT is forming a bull flag pattern with high structural quality (15.0/15 structure score). Price is trading at $85.39, consolidating between support at $78.97 and resistance at $85.99. Volume is elevated at 1.26x average with strong breakout mechanics (11.8/13), though volume confirmation is moderate at 10.5/12. The 74.81% win probability and overall 76.3 score reflect a disciplined setup. RSI at 58.27 shows no overbought condition, and beta of 0.58 indicates defensive positioning relative to the market. The measured move target is $88.21.
Stock Context
Medtronic is showing signs of a significant operational turnaround, with recent Q3 FY26 results marking its strongest enterprise revenue growth in ten quarters, driven by key product launches. The company revised earnings guidance for 2026 to expect revenue growth of approximately 5.5%, with EPS guidance in a new range of $5.62 to $5.66. Medtronic completed a $650M SPR Therapeutics acquisition, adding peripheral nerve stimulation assets with longer-term EPS accretion expectations. Analyst Leerink flagged the AMA CPT Editorial Panel review of renal denervation codes as a clear positive, potentially unlocking wider reimbursement and faster adoption of its Simplicity Spyral system. The board approved a dividend increase for Q1 FY27 to $0.72 per share, marking the 49th consecutive year of dividend increase. These operational improvements and strategic acquisitions are creating positive sentiment driving the consolidation pattern.
What to Expect
A successful breakout above $85.99 resistance would target $88.21 on the measured move basis, representing approximately 3.3% upside from current levels. Volume confirmation is critical—the setup requires sustain of current elevated volume (1.26x average) through the breakout to confirm buying commitment. The 74.81% historical win probability supports the pattern's reliability. The invalidation level sits at $78.97 support; a breakdown below this point would negate the bullish flag structure and signal weakness. The pattern sits within a bullish market regime (0.62) and bullish healthcare sector regime (0.51), providing favorable macro tailwinds for pattern completion.
Risk Factors
Medtronic is set to report Q1 fiscal 2027 earnings on September 1, 2026, with analysts expecting a 9.5% increase in EPS to $1.38. This earnings catalyst falls within 29 days of pattern detection, creating near-term volatility risk. Margin pressures from tariffs and a shifting product mix remain a near-term headwind. Medtronic is navigating challenges such as a recent cannula recall. Though beta is low (0.58) and volatility moderate at 2.9% ATR, the upcoming earnings call combined with regulatory uncertainty around pending SPR and CathWorks acquisitions could trigger sharp reversals. Position is 17.7% below the 52-week high, limiting cushion if momentum stalls. Monitor tape closely through August for any negative analyst revisions ahead of September earnings.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is MDT a good swing trade?
MDT scored 76 out of 98 on our bull flag scan, with a 75% historical win probability over a 1-6 trading days hold. Good setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $85.39, with a conservative target of $88.21 and a stop loss at $80.69.
What would invalidate this bull flag setup?
A close below the stop loss at $80.69 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical bull flag setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.
Market & Sector Regime
Market
Bullish
0.63
-1.0
0
+1.0
Health Care Sector
Bullish
0.51
-1.0
0
+1.0
Other Patterns Detected Today
Cup and Handle
169 days in pattern
Moderate
18.5
Volatility Compression
29 days in pattern
Developing
31.0