Don't Ignore This Chart!

Crane (CR) Confirms "W" Bottom, Testing Support

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Crane (CR) is a part of the Industrial Machinery ($DJUSFE) space, which has been consolidating since last summer and is poised to break out once again.  CR printed a "W" bottom in December and January, with this bottom confirmed with the high volume gap up and breakout in early February.  This also triggered a relative breakout of CR vs. its industrial machinery peers.  CR became quite overbought in February with its RSI touching 80 and its stochastic reading in the 90s.  Since then, however, we've seen lots of selling pressure and downward price action with the RSI now dropping back to much better level near 40 and stochastic below 20.  The price level is also at the recent breakout point with the rising 50 day SMA serving as further support.  I would look for the 62.00-64.00 range to constitute significant support.  Here's the chart:

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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