Industrial-equipment maker Fortive Corp. (FTV) was mentioned by Jim Cramer on Mad Money last night as a company that was spun off from Danaher (DHR) . FTV does not have a long trading history but it does have some bullish charts - let's take a look.
(For more on FTV and DHR, see: Watch Out for Extreme Swings: Cramer's 'Mad Money' Recap.)
In this daily bar chart of FTV, below, we can see that prices are above the rising 200-day moving average line. This longer-term indicator was tested a few times since February and each time buyers appeared. FTV has been largely trading sideways since January so prices have crossed above and below the shorter 50-day moving average line.
The daily On-Balance-Volume (OBV) shows a positive trend the past 12 months, telling us that buyers of FTV have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator in the lower panel has been crossing above and below the zero line since January as the stock price has moved sideways.
In this weekly bar chart of FTV, below, we do not have a lot of price history but it is mostly positive. Prices are above the 40-week moving average line which is now flattening. The weekly OBV line has been neutral for months.
The weekly MACD oscillator has been above the zero line it's entire time and is now close to a bullish crossover and fresh outright go long signal.
In this Point and Figure chart of FTV, below, we can see a potential bullish price target of $94 being projected.
Bottom line: Risking below $74, traders can go long FTV at current levels and on strength above $80. The mid-$90's is our price target.
