Pentair (PNR) was upgraded to a BUY today by TheStreet.com's quantitative service. If you are not a subscriber to this service you should get a trial and check it out. If you like the challenge of finding your own investments and keeping on top of your existing positions I recommend it. With thousands of securities out there I find this a good filter and time saver. Let's see how the charts and technical indicators line up with the quantitative message.
In this daily bar chart of PNR, below, we can see that prices are above the rising 50-day moving average line. The line was tested yesterday but notice that PNR closed above the line. The 200-day moving average line is also pointed higher. The daily On-Balance-Volume (OBV) line has been making higher highs and higher lows since late July but the line is showing a little weakness now. Maybe this OBV weakness is temporary. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside for a take profits sell signal.
In this weekly bar chart of PNR, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been in an irregular uptrend for the past two years. The MACD oscillator has spent much of the the past two years above the zero line or in bullish territory. Currently the oscillator has narrowed but it has not yet crossed to a weekly sell.
In this Point and Figure chart of PNR, below, we can see a two-year uptrend. A trade at $75 will be a fresh breakout and could open the way to a longer-term price target of $95. A decline to $67.00 is needed to weaken this chart.
Bottom line -- traders could go long on strength above $75 risking a close below $68 for now. The $95 area is our price objective.
