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 of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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