HWM Swing trade idea 01-15-2021After an uptrend the last months, price is in a consolidation mode, for that reason, we are in favor of a break of this balance
HWM trade ideas
Howmet Aerospace: Hugely Undervalued with Promising Upside(Pt.1)Howmet manufactures components for the aerospace, ground transportation, defense, and industrial sectors including aluminum sheet, plate, extrusions, and other specialized parts.
November's Q3 earnings report showed a 37% decrease in revenue Y.O.Y compared to Q3 2019. This was likely due to the pandemic's impact on commercial air travel and aircraft manufacturing as well as Boeing's decision to halt production of the 737 Max.
Currently trading just under $25.60, it is massively undervalued given its high profile contracts with giants like Boeing, Airbus, and Daimler. Distribution of the vaccine and a return to normalcy with increased air travel will raise demand for its products used in commercial aircraft production. Boeing also recently announced that it has resumed production of its 737 Max model, which will help Howmet's aerospace division further.
The global economic recovery and subsequent rise in household income(followed by consumer spending), will likely lead to a bump in new car purchases and production. This would bolster its already strong ground transportation division.
The Daily Chart shows decently high volume and a strong uptrend. With the 50 day moving average of closing prices recently crossing above(and staying above) the 200 day moving average, things look very promising.
Up trend The price now at level .618
he tried twice in the yellow cycle as you seen in the figure to break the level (A) but he failed
If the price can break this level (Green) we will see the price at next resistance level .1 and the green one will be strong support level .
My transaction is clear
take profit at 22.00$
Entry price at 17.79$
Stoop loss at 15.30$
HWM MA MACD Histogram just turned positiveThis is a Bullish indicator signaling HWM's price could rise from here. Traders may explore going long the stock or buying call options. I identified 47 similar cases where HWM's MACD histogram became positive, and 40 of them led to successful outcomes. Odds of Success: 85%.
HWM - basic price action analysisSome quick price action analysis shows an uptrend. Hoping to make an easy 50% here.
