Analyst commentary. Includes: BCO, CINF, CRY, CX, HTHT, INTU, MO, STX, WM, and FANG.
| Comments |
|---|
| BCO The Brink's Company ($42.28) - Protection Safety Equipment - After years of basically a stagnant chart, BCO has really been moving in 2016. The stock has rallied from 26 to a high of 45 this year. In December, BCO pulled back from that rally to 45 and settled back to the middle of the ten week trading band and just recently reversed up to make a higher bottom. This reversal up sets up a nice opportunity to enter new positions with a stop/hedge point afforded at 38, a double bottom. The next upside price objective is 60. |
| CINF Cincinnati Financial Corporation ($78.36) - Insurance - After finding support at $69 in November, CINF broke a double top at $79, a new all-time high. This stock is a strong 4 for 5’er that has been trading in a positive trend since March 2010 and is showing superior near-term strength relative to both the market and its peers. Okay to hold here or buy on a potential pullback as the stock is nearing the top of the 10 week trading band. The first sign of trouble from here comes with a move to $68. Note this stock has a yield of 2.45% attached to it. |
| CRY CryoLife, Inc. ($19.03) - Healthcare - The main trend is positive for CRY and the stock has put together a string of three consecutive double top buy signals after holding the support line in April. Most recently we have seen CRY reversed up to make yet another bottom. Okay to buy this 5 for 5'er with the first sign of trouble coming at 17.5, a double bottom. |
| CX Cemex S.A.B. de C.V. (Mexico) ADR ($8.80) - Building - Over the last several years, CX has traded in a range of the single digits up to the 14 area. After testing the bottom end of that large range in January, CX has been consistently moving higher and the most recent reversal up sets up for a triple top breakout at 9.5. A move to 9.5 would suggest that CX is likely to test that resistance in the 14 area. |
| FANG Diamondback Energy Inc ($105.14) - Oil - After forming a double top at $112, FANG broke a double bottom at $104. This sets up a shakeout pattern. The shakeout is initiated upon a reversal into X’s from here, but it will not be completed unless a triple top is broken at $114. The stock is a 4 for 5’er ranking in the top half of the favored Oil sector matrix. New positions may be initiated upon a reversal into X’s from here or upon the potential triple top break at $114. Support comes against the bullish support line at $96. |
| HTHT China Lodging Group Ltd. ($53.59) - Leisure - We continue to see textbook positive chart patterns out of HTHT. To set the stage, the stock broke a spread triple top at 48 in November. This breakout was followed by a double top at 49 later that month. After rallying to 53 and pulling back, HTHT has given another double top buy signal at 54. Okay to buy the stock here and on pullbacks. The next price objective is 61 and the stock's first sign of any trouble would come at 49, a double bottom. It would take a move to 45 to violate the bullish support line. |
| INTU Intuit Inc. ($118.16) - Software - With the most recent action, INTU broke a double top at $118, a new all-time high. This double top also completes a bullish catapult pattern following a triple top break in March. This stock is a perfect 5 for 5’er as it is trading in a positive trend and is showing superior strength relative to both the market and its peers. Okay to hold here or buy on a pullback as the stock is nearing the top of the 10 week trading band. The first sign of trouble from here comes with a move to $102, a double bottom sell signal. |
| MO Altria Group Inc. ($66.73) - Food Beverages/Soap - After developing support at $61, MO has broken a double top at $67, marking its tenth consecutive buy signal. Weekly momentum recently flipped positive as well, which indicates the potential for further price appreciation over the next several weeks. The stock has a technical attribute score of 5 and provides an attractive yield in excess of 3.5%. New entries are welcomed on this breakout. Initial support is offered between $60 and $61, while longer term support is at $57. Those already long should be aware of resistance from its previous high in July at $70. |
| STX Seagate Technology ($40.84) - Computers - STX broke a double top at $41 on Tuesday, a new 52 week high and the third consecutive buy signal on the chart. This move broke through the bearish resistance line, flipping the trend back to positive for the first time since June 2015 and therefore upticking this name to a 3 for 5’er. Okay to buy or hold here as the weight of the evidence is positive. The first sign of trouble from here comes with a move to $36, a double bottom sell signal. |
| WM Waste Management, Inc. ($70.83) - Waste Management - WM broke a double top at $71, a new chart high and the sixth consecutive buy signal on the chart since January. WM is a strong 3 for 5’er that has been trading above the bullish support line since January 2013. Furthermore, this stock ranks within the top third of the favored Waste Management sector RS matrix. Demand is in control and the weight of the evidence is positive. Okay to hold here or buy on a pullback as the stock is trading at the top of the 10 week trading band, indicating that it is 100% overbought here. Support is at $62, the October low. |
