ITW WCA - Cup and HandleCompany: Illinois Tool Works Inc.
Ticker: ITW
Exchange: NYSE
Sector: Industrials
Introduction:
In this analysis, we are looking at Illinois Tool Works Inc. (ITW) on the NYSE, a noteworthy name in the industrials sector. The weekly chart suggests a possible bullish continuation in the form of a classic Cup and Handle pattern that has been forming for the past 608 days.
Cup and Handle Pattern:
The Cup and Handle is a bullish continuation or reversal pattern that depicts a teacup with a handle on the right side. It's characterized by a rounded bottom followed by a minor pullback, forming the handle.
Analysis:
The previous trend for ITW was upward, which was interrupted by a consolidation phase that materialized as a Cup and Handle pattern, potentially indicating a continuation of the bullish trend. The so-called "lip" or the horizontal resistance of the pattern is at 248.68.
The price is well above the 200-day exponential moving average (EMA), underlining our bullish sentiment. As we observe the current candle's behavior, it appears that we might achieve a close above the lip. A successful candle closure above this resistance could pave the way for a long position.
Conclusion:
In the event of a successful breakout, the price target would be projected at 515.51, corresponding to an estimated rise of about 30%.
Remember, this analysis should be one component of a broader market research and risk management strategy, and it's not intended as direct trading advice.
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Best regards,
Karim Subhieh
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
