Don't Ignore This Chart

Mohawk Reports Strong Earnings, Looks To Break Out On Friday

Mohawk Industries (MHK), a flooring designer and manufacturer, just reported quarterly earnings that exceeded Wall Street consensus estimates.  The initial reaction in after hours is very bullish as MHK has been consolidating in sideways fashion for the better part of a year and the after hours price would constitute a significant breakout.  Here's a look at the current technical picture:

MHK has been bouncing off rising 20 day EMA support and its SCTR rank has been trending higher since the stock put in a double bottom in early November.  Volume trends are strong and tonight's earnings beat could very well be the catalyst to jump start a nice rally here.

Happy trading!

Tom

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