CMI trade ideas
CMISame chart - just looking a bit closer. I'm not very familiar with 3 Drives, it's new to me. But price could be working on one here. Something to keep an eye on. This is a reversal pattern, so it price gets there, look for a long set-up on the daily.
CMI - divergence bounceDivergence
Status: Watching.
News - Wells says Daimler decision to make engines negative for Cummins
Technicals:
Horizontal S&R: yes
Channel S&R: yes
MA S&R: no
Pearson's R >= 85: no
Price @ Fib Ext >1.38<1.62: yes
AO divergence: yes
Stoch divergence: no
Fundamentals:
IBD EPS Rating: 88
IBD SMR Rating: B
Follow Up (Target Achieved)11-days ago, we recommended a long position with details of option trade recommendation. The target price has been hit and price bounced off 147.50. Our target price was $147. Congratulation! If you liked this trade, follow us more to come!
Is Bottom Printed for now?Friday, took a small position as noted on the chart. If you decide to go in, add above 50% 141.66 area with target price $147 area. Since earning, and the overreaction of traders, we put the stock under our radar, there was no major pattern that formed but from weekly chart, price bounced off from ascending support trend line, and was a good indication that the bottom was near if not printed at least for now. However, on a short-term basis the breakdown under its 200-dma looks pretty ugly. The bounce last week failed near $144.00 or close to 3-ema which it failed 3-times last few months which was an indication of what was coming. Though we initiated high risk trade at this difficult area which is a bearish zone, we will add above $141.67 area and $1.44.50 area. 3-step trade positions. In case, you want to take this trade, make your stop loss at recent swing low at and around $137 area with target price $147 to $152 area. Stay safe and follow us for more to come.
Potential buy for $CMI if it can close above 7day EMA $156This stock is coming out of oversold -80 on Williams % R. MACD histogram isn't looking too pretty but if it can close above the trend line it might rally further. One might also want to wait until it breaks the high of $161. The last relative high was lower than the previous high.
Fundamentals show strong market share for diesel engines. The increasingly high cost of diesel incentivizes industry to reduce emissions. The technology developed in conjunction with Westport Innovations puts Cummins in a market-leading position, especially in China where heavy-duty manufacturers need to upgrade their engines.
On the other hand, price growth has largely outpaced revenue growth and increased debt has been added to the company.
CMI "Stock in a Box"CMI is a classic example of a stock in a box, currently the stock is testing the upwards end of this range, breaks of these boxes can be very powerful moves as this consolidation period has everybody waiting to see the direction it breaks in, look for some follow-through here in the next few weeks, if it breaks to the upside with strong volume then this stock is a buy and hold for new all-time highs
CMILooks like a Crab.
Daily time frame shows a pennant formation, while weekly presents a hanging man with downside follow through.
Ugly Double Bottom also appears to be in play for 141.16 (pennant is around the same target)
