• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Industrials

Cabot Corp. Has the Right Fundamentals to Move Higher

 The height of the base pattern for CBT suggests a potential for a rally to the upper $50s.
By BRUCE KAMICH
Feb 29, 2016 | 04:51 PM EST
Stocks quotes in this article: CBT

Looking for a long idea? Cabot (CBT) has a positive-looking chart and constructive indicators.

CBT has broken above its early December high (see the chart above), making a higher high and a five-month uptrend. Prices are above the 50-day simple moving average and the slope of this shorter average has turned positive. Prices have also bested the longer 200-day average, but its slope is flat at the moment. The On-Balance-Volume (OBV) line turned up from mid-January as buyers showed they could become more aggressive with heavier volume on days when CBT closed higher. The trend-following Moving Average Convergence Divergence (MACD) oscillator is very positive. 

This longer-term chart of CBT reinforces the positive short-term chart. Here, CBT is above the 40-week moving average. The OBV line is rising on this weekly time frame and the MACD oscillator is bullish and above the zero line. The height of this base pattern for CBT suggests a potential for a rally to the upper $50s. Traders could go long CBT on this breakout over the December high using a $42 sell stop if the rally fails.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

TAGS: Investing | U.S. Equity | Basic Materials | Industrials

More from Industrials

Is Boeing Touching the Brakes or Ready for Liftoff?

Bruce Kamich
Sep 15, 2023 1:45 PM EDT

Let's see if traders of this Dow component will become buyers or sellers.

I Wouldn't Plant Money in Deere Despite an Analyst's Big Thumbs Up

Bruce Kamich
Sep 15, 2023 8:00 AM EDT

The charts of the farm equipment giant suggest its stock could head downward significantly in the weeks ahead.

Is Summit Materials' Retest of a Key Moving Average a Buying Opportunity?

Bruce Kamich
Sep 13, 2023 8:00 AM EDT

Perhaps, but if the price doesn't hold it would be best to quickly ditch the supplier of aggregates, cement and asphalt.

Tom Lee: September Is Off to a Weak Start, But Key Data Are Still to Come

Tom Lee and the FSI Team
Sep 6, 2023 8:45 AM EDT

In terms of the inflation trajectory, it really is housing and autos that matter most. Bottoming of US PMIs strengthens the case for Industrials.

3M Has Been Getting Its Tail Kicked: What Traders and Investors Need to Know

Stephen Guilfoyle
Aug 28, 2023 11:45 AM EDT

The 'forever chemicals' issue is not over and done with.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:20 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading in Multiple Time Frames
  • 10:24 AM EDT BRUCE KAMICH

    This Could Get Messy

    A number of key stocks are getting close to import...
  • 01:41 PM EDT CHRIS VERSACE

    Latest AAP Podcast With Helene Meisler!

    Listen in as the Action Alerts PLUS podcast talks ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login