Pentair (PNR) has an attractive-looking chart, and further gains probably lie ahead after a short correction.
In this daily chart of PNR, above, we can see a small bottom in January and February. The On-Balance-Volume (OBV) line turned up in February, showing us that buyers of PNR had become more aggressive.
Prices are above the 50-day and 200-day moving averages and there was a golden cross of those averages in early May. Prices are rising, but the pace of the rise has slowed. We have higher highs in price in April and May, but lower highs on the 12-day momentum study. This bearish divergence suggests we could have a sideways to slightly lower correction -- maybe to $57.
In this weekly chart of PNR, above, we can see prices above the 40-week moving average line. The OBV line is rising on this timeframe and the Moving Average Convergence Divergence (MACD) oscillator is bullish. When you have a strong weekly chart, most dips on the daily chart will likely be shallow. We are looking to buy PNR on a dip towards $57, and then only risk a close below $55. On the upside, we look for $70 as our first target.