Can This Overlooked Industrial Continue Its Winning Ways?
Let's visit a name in a sector that doesn't always get a lot of attention.
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Provider of industrial equipment, Ingersoll Rand IR, has rallied strongly the past year and more recently made an upside breakout from a four-month consolidation pattern.
Let's check out the charts and indicators and formulate a trading strategy.
I can see in the daily bar chart of IR, below, that the shares have rallied over the past 12 months. Prices trade above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has declined since March and does not confirm the price action with signs that sellers of IR are being more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
In the weekly Japanese candlestick chart of IR, below, I can see that the shares have been in a longer-term advance and trade above the rising 40-week moving average line. The most recent candlestick could be a "gravestone" doji and as its name suggests it is potentially very bearish.
The weekly OBV line is strong but the MACD oscillator has been correcting to the downside. The MACD oscillator has been narrowing recently and could cross to the upside for a new outright buy signal.
In this daily Point and Figure chart of IR, below, I can see an upside breakout from a consolidation pattern noted above. A price target in the $122 area is being suggested.
In this weekly Point and Figure chart of IR, below, I can see a similar picture as the daily chart above. A price target of $122 is being projected.
Bottom-line strategy: The broader market averages are "unsettled" at this point in time so that could derail some stocks. IR may or may not be affected. If IR stays independently strong then traders could go long risking to $93.
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