Shares of Parker Hannifin (PH) jumped higher on Thursday. That's good. Right? Sure, but it brings PH closer to overhead resistance, which requires our attention.
In this daily chart of PH, above, we can see a small V-bottom in January and that prices quickly rallied above the 50-day moving average. PH pulled back and retested the 50-day moving average from above and then resumed the advance. The slope of the 50-day average is now rising. Prices are also above the 200-day average line. The On-Balance-Volume (OBV) line turned up in January with prices, which signals that volume is now higher on days when PH closes higher.
However, notice how the February-March leg up on PH came on weaker momentum (bottom panel). This slowing in the rate of acceleration could be a problem as resistance in the $120-$125 area is approached. My suggestion is to tighten sell stops to $105 or higher.
This longer-term chart of PH, above, shows we have rallied above the 40-week moving average line. The OBV line is moving up on a weekly time frame and the Moving Average Convergence/Divergence oscillator generated a cover shorts buy signal. But we also see how much resistance there is in the $120-$130 area. I think this resistance will mean PH struggles and you will probably find better trading opportunities elsewhere.