The old saying is that nothing goes straight up or straight down. Within bull markets and bear markets, there is a rotation from sector to sector and industry to industry, as investors continually reappraise the changing prospects. Ingersoll-Rand (IR) peaked in May/June of last year and sold off (chart below).
IR recovered a bit in October, followed by another decline to a January low (chart above). As IR declined over the past 12 months, there was a moving average crossover in August with the 50-day average declining below the 200-day average, for what is commonly called a death cross.
The On-Balance-Volume (OBV) line went up in October and November, indicating aggressive buying, but for the most part the OBV line has been pointed down. The Moving Average Convergence Divergence (MACD) is improving, but not yet above the zero line.
In this longer-term chart, above, of IR we get a sense of the longer-term top pattern. The technical studies on this chart are on a weekly basis and show a peak in the OBV line in May and prices below the declining 40-week moving average. The MACD oscillator shows only limited improvement from the lows.
Bottom line - IR could firm further into the $55 to $60 resistance area, but I suspect it will fail. A better buying opportunity for IR is likely to present itself in the months ahead.