Ingersoll-Rand (IR) is showing renewed signs of life with a surge off support and two mini breakouts. Note that IR is part of the industrials sector and this sector is showing upside leadership with a 52-week high recently. First and foremost, Ingersoll-Rand is in a long-term uptrend with a 52-week high in October and a positive PPO(50,200,0). Note that the PPO(50,200,0) is positive when the 50-day EMA is above the 200-day EMA.
The stock fell quite hard from late October to mid November, but managed to find support near the August low and firmed into early December. There were two mini breakouts over the last few weeks and these indicate that the short-term trend has turned up. It looks like the long-term uptrend is continuing and I would expect new highs in the coming weeks. A close below 84 would call for a re-evaluation of this bullish assessment.
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