Is Ingersoll Rand Breaking Out?
Attention has focused on growth stocks for the last two months. Now could be the time to return to industrial names like Ingersoll Rand.
The manufacturing conglomerate has gone nowhere for over five months. However it made a series of higher lows since mid-June while holding below $49.50. The result is a bullish ascending triangle, which now appears to be breaking.
That zone has additional importance because it’s also the location of the 50-day simple moving average (SMA). Bollinger Bandwidth has been toward the narrower end of its range as well.
The news flow could be positive for IR because earnings, revenue and guidance beat estimates last week. Congress is also near passing an infrastructure bill, which would mostly favor industrials.
Speaking of industrials, a strange thing has been happening inside the sector: Some of the biggest names like United Parcel Service and Boeing have struggled for their own reasons. But many of the smaller names that track general economic activity – like Carrier, Otis and TE Connectivity – are jumping. IR fits more under that second group.
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The manufacturing conglomerate has gone nowhere for over five months. However it made a series of higher lows since mid-June while holding below $49.50. The result is a bullish ascending triangle, which now appears to be breaking.
That zone has additional importance because it’s also the location of the 50-day simple moving average (SMA). Bollinger Bandwidth has been toward the narrower end of its range as well.
The news flow could be positive for IR because earnings, revenue and guidance beat estimates last week. Congress is also near passing an infrastructure bill, which would mostly favor industrials.
Speaking of industrials, a strange thing has been happening inside the sector: Some of the biggest names like United Parcel Service and Boeing have struggled for their own reasons. But many of the smaller names that track general economic activity – like Carrier, Otis and TE Connectivity – are jumping. IR fits more under that second group.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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