Don't Ignore This Chart

PPO Upturn Points to a Correction-ending Breakout for Textron

Textron (TXT), which is part of the industrials sector and the defense-aerospace industry, surged to new highs after the election and then declined in 2017. I consider this a correction within a bigger uptrend because the decline retraced less than 50% of the prior advance and the stock remains above the rising 40-week EMA. A channel formed over the last few months to define the immediate downtrend. A break above channel resistance would signal an end to the correction and a resumption of the bigger uptrend. Signs of an upturn are already emerging as the PPO (5,30,5) turned up and crossed above its signal line for the first time this year. 

****************************************
Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
****************************************

|

Subscribe to Don't Ignore This Chart to be notified whenever a new post is added to this blog!
comments powered by Disqus