Industrials
ENG Swing Ahead of August Earnings!I am considering current theme of oil tickers with industrial, multiple pipeline incidents in recent history including most recent ocean on fire incident. ENG looks good from a technical perspective getting a falling wedge breakout on the 1 year 1 day with volume! check out the support and resistance levels and ask if risk reward is good for you. Do not trade based on these charts make your own plan. Current price 3.23.
Infrastructure & Alternative Energy I mean need I say more than the company’s name? Just wait for that bill to be signed! This company has a backlog of $2 billion! At the same price level that took it from $12 to $24! I got the funds in place!
MPWR somehow still above 300.000.618 fib level has been tested repeatedly, and holds for now despite continuing to trade below MA100 and MA200. Selling pressure apparent from CMF and acc/dist. Most recent earnings tending toward pre-pandy levels, so perhaps overvaluation is becoming more difficult to ignore. Though I could reasonably see MPWR bouncing again within the current sideways channel, I tend to favor a continuation of the downtrend, if only for the complete dearth of bullish signatures at the moment.
Energy - ARCHModel has given entry signals for Arch Resources:
- Arch Resources, previously known as Arch Coal, is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Resources is the second-largest supplier of coal in the United States, behind Peabody Energy.
- We expect a boom in the energy and industrials sectors, due to an increase in global industrial output to meet initiatives.
- We are very excited about opportunities in the energy and commodities sectors, as we believe a macro turn is approaching in the nearest future.
- Technically appears to be rising to the top of its channel, after testing channel support with a spring.
GLHF,
DPT
Disclaimer:
We absolutely do not provide financial advice in any shape or form. We do not recommend investing based on our opinions and strongly cautions that securities trading and investment involves high risk and that you can lose a lot of money. Loss of principal is possible. We do not recommend risking money you cannot afford to lose. We do not guarantee future performance nor accuracy in historical analyses. We are not registered investment advisors. Our ideas, opinions and statements are not a substitute for professional investment advice. We provide ideas containing impersonal market observations and our opinions. Our speculations may be used in preparation to form your own ideas.
Industrial metals are set to witness an upcoming rally
Industrial metals are set to witness an upcoming rally after Joe Biden's $6T budget proposal, The spending plans would fund investments roads, water pipes, broadband internet, electric vehicle charging stations and advanced manufacturing research.
CENX is an industrial metal stock that's being traded within a descending channel on the 4hr time frame since March 12.
Momentum and strength indicators are supporting that the stock would move upward to hit $14.65 and $16.25 levels consequitvely on the short term.
Century Aluminum shares CENX rose 7.62% in yesterday's trading in a strong session for metals.
Industrials XLI to keep moving upSector ETFs are great ways to make long term plays and gain more than just buying the broader market.
We like industrials on several factors including re-opening.
However, we can't emphasize enough that our system is more based on Reward to Risk Ratios and having the right Stop-losses on swing trades
as well as long term investments.
Industrials and Basic Materials have a decent outlook to continue forward especially on a longer term basis.
Stocks/Industrials - CNR Railroad WarsIdea for Canadian National Railway:
- An interesting thing has occurred. CNR approached Kansas City Southern (KSU) with an unsolicited offer that would merge the companies to become the first and only single railroad to cross Canada, the US, and Mexico. A combination of either CNR or CP with KSU would do this. Naturally, CP will want to stop this existential threat at all costs.
- Such a deal must pass massive regulatory scrutiny and receive approval from the Surface Transportation Board.
- CP filed a formal objection to the rival bid with the STB, which has the final say on rail acquisitions in the US, in order to buy time. The 10% price drop in CNR during the 30% rise of KSU reflects the euphoric investors now pricing in the probability of a deal and a no-deal.
- The bottom line is that deal, or no-deal, CNR is at quite the discount, for investors bullish on defensive stocks in the industrials/transportations sectors.
Our speculation is that the deal will occur, and it will occur for CNR. Why?
- We believe that a macro turn is here. We are bullish on the industrials/transportation sectors.
- This aligns with our belief in the theme that that a time is here such that companies in all sectors to undergo mergers & acquisitions, in a race to become "Too Big To Fail" and obtain the blessing of government subsidization before the inevitable mass bail-ins.
- As the global economy moves toward Stagflation, and perhaps Deflation, investors will decrease their risk appetite appropriate for a Goldilocks economy, and will rotate from Momentum and Consumer Discretionary stocks to Quality, Consumer Staples, Utilities, Dividend Yields, and Defensives stocks.
- We foresee a ravenous appetite in the supply chain sector, due to (a) COVID shipping backlog, which will only increase should COVID mutate and cause further lockdowns, (b) nations moving toward domestic production, which will increase intranational logistics and infrastructure demands, and (c) a shift from a software-oriented tech boom to a boom in the industrials and capital goods sector, from what we perceive is being attempted with the US stimulus packages.
- CNR is the bigger company, and has more resources at its disposal. At such a junction, the time has come for them to bet everything on becoming the undisputed railway leader in the Americas before the industrials boom cycle.
- CP's objection is simply a tactic to buy time, but CNR will inevitably come back with an even greater offer. At the end of this game, CP cannot win, but only come out in a stalemate, which will not benefit KSU. What they could do is continue to be a thorn in CNR's side until they receive a favorable portion of the pie, such as % ownership of the new entity.
- KSU will at least want to maintain the façade of considering any deals, to keep the momentum in their stock price.
- CP may offer a great entry later on, should they fail in their efforts and investors abandon them.
- Technically, the prices must converge. CNR is at the bottom of a horizontal channel, but it would be apt to observe the reaction to the correction before entry, to see if it is indeed an over-reaction.
- We doubt that institutional investors will let this opportunity pass and allow a 100 year old defensive company and Canada's largest railway to fall further. 120~ is the lowest we think it could fall.
- Interestingly, Bill Gates has recently become the largest single shareholder of CN stock, owning a 10.04% interest. We have further speculations about Bill Gates' ESG objectives, which for now - shows large investors' confidence in the company.
GLHF,
DPT
Disclaimer:
We absolutely do not provide financial advice in any shape or form. We do not recommend investing based on our opinions and strongly cautions that securities trading and investment involves high risk and that you can lose a lot of money. Loss of principal is possible. We do not recommend risking money you cannot afford to lose. We do not guarantee future performance nor accuracy in historical analyses. We are not registered investment advisors. Our ideas, opinions and statements are not a substitute for professional investment advice. We provide ideas containing impersonal market observations and our opinions. Our speculations may be used in preparation to form your own ideas.
AQUA: Potential Benefitor From Biden AdministrationRelative strength against S&P picking up, strong breaks above trendlines with small caps still seemingly being supported by the market. Liking this one for a longer term hold
$BA PT --> $305 ---> $328Good retest of previous break out area which is now support $245. I expect $BA to make a run up to the median of the pitchfork level again soon.
Using fibonacci lvls we can see key resistance as pointed out in the graph. $BA is know to move big in a short time period and April is historically $BA best month
Possible Upcoming Catalysts:
C1 - Southwest order rumored to be very big
C2 - FAA inspection of 787 approved and $BA can resume deliveries ✅ ($BA resume deliveries of 787 Friday 26)
C3 - Report second consecutive month of a net positive orders to cancellations figure in second Tuesday of April
C4 - Re-Opening trade still has more room to go especially Boeing who has been lagging among industrials
C5 - Biggest and least likely imo would be for China to end the ban of the 737 Max = the Chinese are huge buyers
Crude Oil at Critical LevelWTI Crude Oil is currently at a critical support level. The red line signifies the broadening formation that Crude is moving in. If we see a proper bounce here, the volatility in the markets as a whole will cool off too, because oil heavily influences the industrial and financials sectors.
Ingersoll Rand Has a High Tight PennantIndustrials have outperformed this year as investors look for the economy to rebound. Ingersoll Rand is a member of that group with some interesting chart patterns.
First, notice how IR surged to a new all-time high last week. It’s now pulled back to hold its earlier peak around $47.50 and form tight pennant. Traders may watch the 8-day exponential moving average (EMA) as a potential shorter-term trend line.
Second, IR recently formed an ascending triangle, which it’s broken to the upside.
Third, the intermediate-term trend is turning more bullish after the recent pullback. MACD is now rising and the 21-day EMA has climbed above the 50-day simple moving average (SMA).
Finally, IR formed a bullish outside candle today (despite the broader market selling off).
IR supplies products like air compressors, power tools and lifting equipment. Those stand to benefit from a stronger economy and infrastructure spending. The company has also beaten estimates the last two quarters as management harvests synergies from its recent merger. (The old Ingersoll Rand recently split off its Trane HVAC business and merged with industrial-equipment company Gardner Denver.)
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Steel long-term fate1 candle = 1 month. Which shows us a 10 year down-trend which is about to be tested.
If we break R1, R2 is the next potential move. Since early november we haven't broken the 10sma, which can be used to exit half your position.
Fundamentally speaking, it appears the market is expecting the stimulus bill which might come in the next months, and will most likely help the Infrastructure play.
RSI is 62 on a monthly basis, on a daily basis it is 80.
I would keep it on a watchlist until we break this downtrend, if you haven't been able to participate so far.
Check out my last analysis on Steel since late october down below.
🗑️ Stericycle: SRCL - ready to takeoff from supportHi mates, have another nicelooking trading idea on NASDAQ:SRCL
Now its perfectly sitting in demand zone at 65 - 67.60
The nearest target is in 72 - 74.60
Industial sector is one of strongest in recent days.
Undervalued and after 5 years the beast is waking upI think it's located on an uptrend channel time zone and could have enormous momentum. hold it until June with a stop loss of uptrend channel's floor
LONG HALLIBURTON CO (HAL) - Extremely Undervalued StockNYSE:HAL - An undervalued Stock In My Opinion - huge upside potential - BUY at $13 - $14 - finding a buy for you will guarantee the best profitable position.
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NYSE:HAL is one of the world's largest providers of products and services to the energy industry.
helps its customers maximise value throughout the life cycle of the reservoir from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimising production throughout the life of the asset.
NYSE:HAL Company is an American multinational corporation. One of the world's largest oil field service companies, it has operations in more than 70 countries. It owns hundreds of subsidiaries, affiliates, branches, brands, and divisions worldwide and employs approximately 55,000 people.
Traded as: NYSE: HAL, S&P 500 component
Industry: Oilfield services & equipment
NYSE:HAL